A Study Of East Asia Monetary Corporation

The paper firstly summarizes the major monetary corporation theories including the Theory of Optimum Currency Area, Policy and Market pill-over theory, Productive Cooperation & Counter-Productive Cooperation theory, Hegemonic Stability Theory and one market one money theory. Then it introduces the existing monetary cooperation practice which are European Monetary Union, the Latin-American DoUarization and the Monetary Union in African. From these practice, we know currency cooperation is the inevitable result of regional economic integration and regional monetary cooperation may adopt the different pattern in different area.Secondly, based on the background and progress of East Asia monetary corporation, the paper analysis the necessity and possibility of monetary cooperation in East Asia. Although the East Asian regional currency integration is a long-time target, there are some initial conditions for East Asia to run the monetary cooperation mechanism, therefore the areas might start up basic monetary and finance cooperation.Thirdly, the paper tries to design a migrating routine for East Asian Monetary Cooperation. Three stages are divided for east Asia monetary corporation which are the finance crisis rescues stage, the exchange rate coordination stage, and currency integration stage. Regarding four kinds of exchange rate coordination mechanism Dollar Standard, Yen Bloc, the BBC rule and the AERM, we should select the BBC rule. In order to realize the East Asian regional currency integration, we can build three parallel monetary Sub-clusters which maybe a more feasible solution.Finally, this article point out the P. R. China may play an important role in the East Asian regional monetary cooperation. The P. R. China should adopt positive attitude and even act as the leader. Therefore, the P. R. China should improve its domestic finance policy and promote RMB internationalization.