Exchange Rate Cooperation In East Asian Economic Integration Research

The article mainly discusses the regional exchange rate cooperation based on the present economic situation of East Asia. The East Asia monetary cooperation is underway in two phases. In the near future it is mainly to carry on the harmonization of regional economic policy and some bilateral cooperation. In a long term it is the main goal to construct East Asia exchange rate steady mechanism (EAERM).The main contents of this study are as follows:First part, the article analyzes the basis of Exchange Rate cooperation in East Asia from realism. By analyzing the following three aspects, the revelation of the East Asian Financial Crisis, the malpractice in the exchange rate system, and the requirement of exchange rate cooperation to promote monetary power in East Asian, we find that the weak financial system in East Asia has not been improved at all after the Southeast Asian Financial Crisis, and the exchange rate system is not strong enough. In addition, the excessive dependence on U.S. dollar is a hidden trouble to affect the financial stable in East Asia in the long run. However, the improvement of the current situation will not be achieved by a single country, but by the cooperation of the countries in East Asia.Second part, the article proves the necessity of the exchange rate cooperation in East Asian from many aspects, including Policy Spill-over theory, The Theory of Hegemonic Stability, Game theory, Hammada image and theeternal triangle.Third part, the article studies on the condition of the exchange rate cooperation in East Asian, i.e., the probability of the exchange rate cooperation in East Asian. Firstly, the article analyzes the development of the economic integration in East Asia. Then, by researching the theory of optimal currency area and the index of optimal currency area, it's obtained that the exchange rate in East Asian has possessed the basic condition of cooperation. Furthermore, some primary work of the exchange rate cooperation has been developed.Fourth part, some methods to realize the exchange rate cooperation in East Asian has been analyzed. Firstly, the theory of exchange rate Target Zone and the practice in Europe have been introduced in brief. Secondly, several methods of the exchange rate cooperation in East Asian are compared and assessed. Then the article points out the Common-pegged Currency Basket exchange rate system will fit for each economic entity in the exchange rate cooperation in East Asian. Furthermore, the two ways, target area system and crawling sticking system should be adopted to have the advantages of the both exchange systems and do better for the financial...