Research On Cooperation Of East Asian Currency

On the 2ed July, the central bank of Thailand decleared that they would abandon fixed-rate cross-rate system, shifting to floating exchange , Thai Baht depreciated represently 20%,introducing a financial crisis sweeping all the east Asia and south-east Asia except China.The countries confronting financial crisis such as Thailand, Malaysia, Indonesia, Philippines, Korea relapsed into serious economic recession, the wealth measured by dollar shrank a lot,.Many fiancial institutions and enterprises bankcrupted, many workers were unemployed,as a result,some countries were in tuburlance.We first introduce the background of the cooperation of east Asian currency,then introduce the history of OCA,We adapt the G-PPP Model to evidential analysis the potential on OCA of economic substance.headway and Obstacles following that, afterwards,We probe into the blue prints of Asian coorperation on currency,including basket-pegging, AREM and so on, however,The conclusions are ,at present there is many shortcomings to implement Yen Bloc. There is advantages and disadvantages ,when the East Asian Dollar Standard adapt.Although adopting basket-pegging can prevent competitive depreciatiation from hasrassing trading,creating conditions for area cureency,there is problems such as the currency choosen and their weights.Finally,we give some advice.