Asian Regional Monetary Co-operation: Theory, Practise And China's Function

The history of international monetary system is the history of people' choice for credit order symbolized by currency. After the experience of all kinds of gold standard system, Bretton Woods System and Jamaica System, the internatinnal monetary system presented a trend of interregional rate adjustment and arrangement. The successful origination of Euro in European Union and currency co-operation in Middle-North America and "dollarization" in Latin America are the concrete manifestations of the trend. As one of the most important economic powers in the world, it is necessary for all the Asian countries to reinforce interregional financial adjustment and co-operation. In the dissertation, through the analysis of Asian economy, finance and politics, the author concludes that the integration level of economic and finance in Asia is constantly raised, and the key economic index of major countries and districts also gets to be identical gradually, but generally speaking, the foundation for currency co-operation is still not firm, and not completely satisfy the standards of a currency area. The future trend of Asian monetary arrangement is single currency, but the process of the development is gradual and step-by-step. The process can be divided into three levels: the first is to establish an interregional organization of financial co-operation; the second is to set up an Asian rate system; the third is to finally change to Asian single currency area. Though it is very difficult to establish an Asian currency union, it is still worth expectation. In the first years of 21st century, the east asian regional monetary cooperation has gained some preparatory successes, but the deeper cooperation in this area is faced with many difficulties. Our study finds that with its stable economic growth, its increasing economic importance and closer trade and industrial relations with the other east asian economies, China can be the market provider and the economic stabler in this area, and its monetary policy can be the regional nominalanchor. So, China's participation can solve the difficulties of regional monetary cooperation and it will inevitably be the key force of the cooperation process. RMB can "asianization" through the regional monetary and exchange rate arrangements, and become the dominant currency in east asia.