Study Of The East Asian Financial Cooperation

According to the results of the OCA (Optimal Currency Area) standards test, East Asia have generally reached a comparably high level in respect of four main categories. Although East Asia shows less competence comparing to European Union on some specific indexes, and it's quite infeasible to build up a common currency area in East Asia at the current stage, East Asia have shown great needs and potentials for regional financial cooperation. Considering the close connection among each indexes, East Asia in fact demonstrates a solid basis for financial cooperation and high potential for currency cooperation of higher level. After elaborating and evaluating the cooperation frames, assumptions and current progresses, the author proposed that East Asia cooperation progress be divided into three stages with certain tasks for each stage, among which building East Asia Common Currency Area can be the task of the last stage. East Asia economies could finally complete this task through continuous financial cooperation. In the last part of the essay, some suggestions are proposed for CMI (Chiang Mai Initiative), ABMI (The Asian Bond Markets Initiatives) and regional exchange rate coordination according to the tasks of the current stage.