Study On The Problems Of Monetary Integration Between China And ASEAN

On 1st January 1999, the use of Euro makes the integration of European currency become realization! Mundell who is'the father of Euro'has predicted that the three integration-currency region would take place that is accordance with the three economic region, Euro region, dollar region and Asian currency region. The problem of how to realize the Asian currency region becomes a focus of attention under the situation that its economic integration has reached to such an extent. The found and development of China-ASEAN Free Trade Area make the found of China-ASEAN become possible, according to Theory of Optimum Currency Areas, the prosperously economic development will push the found of China-ASEAN Monetary System in the end! But the situation is not like that now, the integration of monetary system is not synchronous with the economic development of this region! This works thinks that the main cause of the lag of integration of monetary system in China-ASEAN is that there isn't a powerful country which raises and develops the monetary cooperation.This works makes the use of Theory of Optimum Currency Areas and a large number of data to analyze the economic factors of China-ASEAN monetary integration! It indicates that with many dependencies existed in the trade activities and the continue falling cost of currency cooperation, China-ASEAN can make the try of monetary integration! The found and development of China-ASEAN Free Trade Area make the time for enhancement of the currency cooperation in China-ASEAN area! This works also think that Currency cooperation is the reality of the co-existence relation and the reflect of the cooperative game desire between China and ASEAN. Taking part in and developing the monetary integration is consistent with China's policy of Peaceful development, and it is also helpful for ASEAN to implement the international strategic interests. For the Exchange rate cooperation, it concludes that the sub-region of China-ASEAN cannot stick to the U.S. dollar exchange rate system and proposes the two exchange rate coordination mechanism which are'crawling stare at a package of target areas strategy'and'stare at the mixture currency package that is composed of the inside and outside regional currencies'.