Study On The Problems Of Monetary Integration Between China And ASEAN

At present, the world economy is tending to be divided into three regions-EU,NAFTA and the area of Asian economic cooperation. Coupled with the birth of Euro Zone and the dollarlization in America, the appearance of a singular currency area in Asia is necessary not only to the development of Asian economy but also to the construction of a reasonable international currency system. Therefore, the monetary integration in Asia is being discussed as a main topic by lots of scholars.According to the theory of optimum currency areas, the economic development of Asia, especially that of East Asia, will finally result in the coming of Asian currency area. However, the fact is there is a distance between theory and practice. In East Asia, the development of monetary integration and that of economy is out of balance. The big powers there have not made good atmosphere politically for carrying out monetary and financial cooperation, which causes the lack of promotion force. But the monetary integration between China and ASEAN can be taken as a good beginning of the monetary integration in East Asia.The thesis takes the theory of optimum currency areas as a tool and applies some routine methods such as qualitative analysis, quantitative analysis, deduction and induction, etc. After examining economic index of the East Asia carefully, the possibility and practical access of putting theory of optimum currency areas into practice are mentioned. By careful analysis of East Asia in politics and economy, the thesis concludes that: East Asia has had a strong basis of monetary and financial cooperation in economy but a weak basis in politics. The thesis creatively holds that the monetary integration between China and ASEAN should become the preface of the monetary integration in East Asia and continuous efforts will eventually to give birth tothe singular currency area in Asia-Asian currency area.