Monetary Cooperation In East Asia And China's Countermeasures Research

With the development of economic globalization and monetary integration,regional economic cooperation are a main trend of world economic development. Therapid development of economic development and regional monetary integration putsforward a realistic and urgent subject : as an important polar in world economy , allstates in Asia have to strengthen their monetary coordination and cooperation .Regional currencies in Asia are facing afresh necessity and trend of integration.Especially, toward the late 1990s, the fast economic development in East Asia madethe countries of this region connected closely and entirely. The stormy financial crisisin Asia made East Asia countries recognized: regional policy coordination is aneffective means to prevent and remove crisis in virtual economic expand and fastmonetary liberalization of the world. Thus, constructing regional monetary system inEast Asia has become common understanding of the regional countries .Chinaattaches much importance to monetary cooperation in East Asia. Consequently, it isnecessary to do some research on it. Monetary cooperation in East Asia has practical meaning. Combined the theoryresearch with positive analysis, quantitative analysis with qualitative analysis,inductive contrast with conclusive analysis, the thesis attempts to show the feature oftheory and countermeasure .The thesis consists of five parts. Part one introduces the reality in currency cooperation of eastern countries,analysis the reasons behind it from economic angle. Part two focuses on theory research into monetary cooperation in East Asia. Thebest theoretical basis on monetary cooperation is the theory of optimum currencyregion. The set-up standards and preconditions according to the theory are analyzedin this part, so is the resulting profit and cost. Part three analyses feasible conditions of monetary cooperation in East Asia inaccordance with the theory of optimum currency. It finds many advantageous factors,such as highly interrelated regional trade, high open degree in ASEAN, the strongmobility in factor market and the similarity in industrial structure and the concurrencein economic period and the identification in macro-policy object. Meanwhile, manydisadvantageous factors exist also. Such as much difference in economicdevelopment level, weak bases on economic cooperation and low degree monetarymarket integration. Thus the monetary cooperation in eastern Asia should takeperiodical and gradual road. Part four puts forward the imagination and periodical process in monetarycooperation in eastern Asia and constructs a whole mode. The short-term strategicchoice is to set up Asian monetary foundation .The mid-term strategy is to found"sub—monetary cycle", in which united currency is realized. The long—tern strategy:monetary region like EU. Part five analyzes china' s countermeasure under the tendency of monetarycooperation in East Asia .The economic boom and monetary stability in East Asia isan important external condition for fast, sustainable Chinese economic growth. Chinashould attach much importance to monetary cooperation in eastern Asia; take apositive attitude toward it. By strengthening policy coordination with East Asiacountries and pushing actively the RMB regionalization and internationalization, theunited eastern currency will finally come into being.