A Study On Economic Foundations And Process Of Regional Monetary Cooperation In East Asia

The depth of economic globalization and integration makes the relation among countries and areas more closely, but also put forward higher demands to eliminate currency exchange rate and strength monetary cooperation. To promote regional monetary cooperation and create regional currency can ease internal contradictions of international monetary system, and to be a change in trend of the international monetary system. In addition, the outbreak of two financial crisis in 1997and in 2008, make people more aware of importance of strengthen regional economic and financial cooperation, jointly prevent and respond to crises. Based on the background, monetary cooperation have become an increasing concern in East Asian countries, and a new phase, a deeper level of regional monetary cooperation has become a consensus among all countries in East Asia. With increasingly frequent economic exchanges between East Asian countries and regions, regional monetary cooperation in East Asia will undoubtedly bring greater benefits, and construction of a series of cooperation mechanisms will also play better prevention and relief effects when crises occur. Therefore, to promote regional monetary cooperation and achieve monetary integration in East Asia is a realistic choice for long-tern development in East Asia.This dissertation based on the theory of Optimum Currency Areas, points out that in the international context of economic and financial globalization and reform of international monetary system, rapid economic development of East Asia is the internal driving force for its monetary cooperation, and the outbreak of international financial crisis put forward more urgent requirements to monetary cooperation of East Asia. In this context, this thesis analyzes the current economic base of East Asia from the point of view of economic openness and economic dependence, the level of market integration and macroeconomic policy objectives point of consistency. This article uses Optimal Currency Area (OCA) index method, structures regression model to verify the feasibility East Asian monetary cooperation. It summaries monetary cooperation results of East Asia in the current stage, and analyses factors restricting further development of cooperation. Finally, according to problems of monetary cooperation, this article proposes the suggestions to promote the progressive development of East Asian monetary cooperation, that is to make clear arrangements for monetary cooperation and draw the path of European monetary integration experience.