On The Choice Of Method To Eastern Asia Monetary Cooperation

At the beginning of this article, some basic problems and theories about regional exchange rate cooperation mechanism are summarized and commented, which lays a hiding foundation for the following study on the choice of method to further Eastern Asian Monetary Cooperation. The reason why it happens is that the following further study is based on the precedent.The second part of this thesis turns to the study on the present situation of Eastern monetary cooperation and the possibility to further it. No matter from the short or long period, Eastern Asia really needs monetary integration and exchange rate cooperation. There are many problems, and the most important is the fact that the exchange rate target zone will meet difficulties in such an area where every country puts its own interest on top of the overall area's.In view of the above problems and the enlightenments the precedent regional exchange rate cooperation theories have brought, the third part designs a plan which conforms to the real situation and betters the Eastern Asian monetary cooperation. The author holds the opinion that the latter reform about Eastern Asia exchange rate system should turn to the Currency Basket. According to the many-faceted pattern of Eastern Asia's external trade and the features of utilizing foreign capital, the Currency Basket should be made up of US dollars, Japanese yen and European dollars. The selected Currency Basket, on one hand, reduces the dependence on the US dollars, which could facilitate the stabilization of Eastern Asia Economy Community's exchange rate, decreasing the unfavorable affects of the wave motion that exchange rate between US dollars and Japanese yen, and facilitating each countries'economic development. On the other hand, it makes Eastern Asia a further step from a lower monetary cooperation, which lays a foundation of setting up a systematic and lawful procedure for Eastern Asia cooperation. The author holds the opinion that it is not an easy but a long and complex period to set up a unitary currency zone for Eastern Asia monetary cooperation, which should be carried out with plans and procedures. So some opinions and methods about monetary cooperation are put forwards. In the forth part of this thesis, it points out some problems that should be paid much attention and some corresponding solving tragedies in the cooperation.