On The Future Of East Asia Monetary Cooperation And The Choices Of China

When Asia Financial Crisis broke out in 1997, People experienced the damage that the anarchy of international monetary system brought to economy and finance of East Asia. Along with the successfull starting-up of Euro and discuss of Dollarization among American countries, reinforcing monetary cooperation in East Asia region and constructing its own monetary and financial system are becoming an important mission from now on. In the trend of regional monetary cooperation in all of the world, as the biggest developing countries in East Asia, China has the pivotal function to the economy development in this area. China should positively participate in the Asian finance cooperation, set good relation with the peripheral countries, strengthen finance, trade, politics cooperation, enhances international status and honor in the entire area, and play the positive function in the cooperation which a powerful political and economical nation should- have, encourage the development of East Asia monetary cooperation.Based on traditional regional monetary cooperation theory and the reality of East Asia, this article analyzes the background and progress of East Asia monetary cooperation, the costs and benefis of cooperation, the influencial fators to the cooperation and the paths of cooperation. We come to a conclusion that as a whole region, it is not appropriate to carry on higher level of monetary cooperation among East Asian countries, but in the light of reality in East Asia region and that monetary cooperation is a dynamic development process, East Asia countries can carry on lower level of and sub-region monetary cooperation, that is to say, the route of Multiple Currency Monetary Union is more suitable for East Asian reality.This article stracture mainly divides into four parts: the first chapter introduces the development of Optimum Currency Areas theory which was conducted in European monetary integration pratice, then discusses these conclusions. The second chapter introduces the progress of East Asian monetary cooperation, then discusses the costs and benefits of cooperation, and the possibility of cooperation. The third chapter explores the path of East Asian monetary cooperation, on the base of the first two parts, this paper suggests East Asia countries should carry on lower level of and sub-region monetary cooperation. The last chapter comes back to China which took an important part in Asia, China should positively participate in the Asian finance cooperation, set good relation with the peripheral countries, strengthen finance, trade, industry, diplomacy cooperation, enhances international status and honor in the entire area, and encourage the construction of East Asian Monetary Union.