Monetary Cooperation In East Asia Research

The theory of optimum currency areas (OCA theory) was first put forward by Robert Mundell, the winner of Nobel Prize. He compared the merits of the fixed exchange rate system and the floating exchange rate system, and made a conclusion that it is best to form an optimum currency area. If there is only one currency in an area, it is good for both micro efficiency and the coordination of macro policies. If the world can be divided into several currency areas, which have floating exchange rate between them and fixed exchange rate in them, the development of world economy can be improved and every country's target can be realized.The most important realization of OCA theory is the circulation of Euro, and many countries and areas seem to be interested in the money union. After the Asian financial crises, many Asian countries began to discuss the Asian currency union.This paper was divided into six parts to discuss this issue:The first chapter introduces the background of Asian money integration. It is Euro and the crises that make Asian countries begin to consider the money cooperation. This is different from Europe.The second chapter discusses why we should integrate money in Asia, including general reasons and special reasons. We analyzed trade, investment, money policy, economy globalization and several other aspects.The third chapter summarizes the profits we can get from money cooperation, such as trade growth, the co-movement of business circle, crises decline and the integration of capital market, etc.The forth chapter analyzes the strategy and possibility of Asian money union. Now Asia doesn't satisfy the standard of OCA. We compare the condition of Europe and Asia and try to find other ways.The fifth chapter discusses the difficulty we will meet in the construction of Asian money union. It is mainly in political area.In the end we make our conclusion: we may use money integration as one way...