The Obstacles And Strategies Of Monetary Integration In East Asia

Regional monetary cooperation is the core topic of today's global economy and International Finance System. The process of Europe Monetary Integration and "the official dollarization" in North America shows that to achieve the stable development of the whole region, the real integration in goods and factors markets and the deep coordination of the monetary are both indispensable. Regional monetary integration can stabilize promote the real overall regional integration, facilitate the further convergence of region.The Asian financial crisis brought about a profound lesson in all countries and regions:If any countries in the region take place liquidity crisis, only themselves could provide assistance to Asian countries (Xiao Yuanxing,2009). Therefore, after undergo the Asian financial crisis, East Asian economies should be able to build a mutual aid system of fully coordinate the establishment of a regional economic, financial monitoring and financial support. This should be based on in-depth understanding of the real economy in East Asia, the analysis of the dominant currency in East Asia and identify the main impact of the East Asian monetary cooperation barriers.This article under the guidance of Optimal Currency Areas Theory.Mundell, McKinnon and other masters of economics first proposed the theory of optimum currency areas, followed by other economists added and improved. Their main importance of the criteria is to determine the optimum currency area, thus provides a strong theoretical support for the development of regional monetary integration. This article gives an in-depth analysis in the use of optimal currency area criteria of monetary cooperation in East Asia:First, the East Asian monetary cooperation in the description of the status and substantial progress, based on the use of optimum currency areas on the East Asian monetary integration Obstacles analysis, divided into non-economic barriers and economic barriers. And then I give an in-depth analysis of East Asia "anchor currency" followed by the Theory of Optimum Currency Areas Criteria. And concluded that:Competitive pressures from the East Asian region, respectively, index of economic mobility and trade harmonic relationships and East Asian regional "anchor currency" choice analysis, the Yuan is the most appropriate of the potential East Asian regional monetary anchor, The Chinese government should play a greater positive effect in the East Asian currencies. At the end of this article, based on current monetary cooperation in East Asia-depth analysis of barriers, the Chinese Government in East Asian monetary cooperation should play an important role.The East Asian monetary cooperation is a long and complex process, although the East Asian monetary cooperation have made some progress, there are still many problems. As long as East Asian countries and regions strengthen political and economic cooperation, have firm confidence in monetary cooperation, and put into practice, in the near future we will be able to achieve monetary integration in East Asia.