East Asia Monetary Integration And Monetary Competition

Forming a single currency region is needed for East Asia to compete in monetary terrain with other countries and regions.It is suggested that a coordinating institution be formed to assess political convergence as well as economic convergence, and a necessary process toward establishing common monetary standards is needed too.The lack of political commitment and experience with political cooperation in East Asia constitute factors against the formation of a common currency area. The cooperation in monetary area in East Asia have begun but still in a low level.The competition to be the leader of common currency area between countries in the area always goes with the monetary integration. In East Asia, the inner competition is existent too.Till now, both China and Japan have no strength to be the only leader of East Asia monetary integration, but each of them has the potential to the leader and they are eager for the leadership.The competition between Chine and Japan will decide what kind of monetary integration will be formed in East Asia.