The Enlightenment Of The Euro Pattern To Monetary Cooperation In East Asia Region

With the differences of the economic growth of countries are becoming bigger and bigger, the economic strength of counties is undergoing complex and profound changes. Accurate judgment of the situation helps to make the right strategic decision. The trend of economic globalization is a depth to the regionalization, a multi-polar world has gradually taken shape in the international political situation, and Asia is playing a more and more important role in the world. East Asia has become an important force of the world’s economic growth. A proper monetary cooperation will not only help maintain the stability of the macroeconomic and financial market, but will also help reduce the reliance on the dollar and the opportunity cost of holding dollars. On the contrary, the financial integration process will promote the economic integration process, and promote inter-regional trade and investment further, achieve the best allocation of the resources in the region, and at last promote the global balance of payments. In addition, monetary integration can also help prevent beggar-thy-neighbor policy of monetary devaluation between regional economies.Since the1990s, the development of regional economic integration was very fast, among them, the event of milestone is the establishment of Euro zone. The establishment of Euro zone has taken a good example for other regional monetary integration. It also promoted the process of regional monetary integration. Comparing to other regional monetary integration, the progress of monetary integration in East Asia was very slowly. After the financial crisis in1997, the monetary cooperation in East Asia has made progress, but the outbreak of financial crisis in2008exposed to the deficiency of mechanism of monetary cooperation in East Asia. This causes our consideration to problem of monetary cooperation in East Asia. Especially in the context of the outbreak of the debt crisis by the end of2009, what should we do to learn from the Euro Pattern to promote monetary cooperation in East Asia? Which lessons should the East Asia learn and choose what kind of the development Pattern and the specific path? Studying these important questions of reality is good to instruct monetary cooperation in East Asia. These Problems will be studied in this paper. This paper based on the lesson that regional monetary cooperation in East Asia can learned from the Euro Pattern development process, to study the Pattern and the path of the monetary cooperation in East Asia. First of all, analyze the historical process and the difficulties of the East Asian monetary cooperation, and the development process of the euro Pattern through theory and data. Then get a conclusion about what East Asian currencies can learn and can not learn from part of the comparison. Finally, combining the actual situation of the euro-zone countries with the East Asian economies, get a conclusion of the Pattern and path that regional monetary cooperation in East Asia should choose. From the historical experience of the regional monetary cooperation, the advanced stage of monetary cooperation is monetary union. Usually there is an independent multinational central bank to issue a single monetary, and develop a common monetary policy. But in East Asia, due to reasons of political history and culture, the formation of a monetary union is unrealistic at present. The Pattern and path that regional monetary cooperation in East Asia should choose are as below:deepen monetary cooperation under the Chiang Mai Initiative, improve the mechanism, establish the sub-region and a common monetary basket system on sub-regional level, and finally achieve the single monetary area in East Asia beginning from proper sub-regional monetary cooperation.This paper has two innovations. The first one is the perspective of research, which studied considerately what East Asia can learn and can not learn from the Euro Pattern through the Comparative analysis method and summarized methods. Explain the designing defects of the Euro Pattern from the point of view of the sovereign debt crisis. No one had made a detailed comparison before. The other one is the scope of the research. At present, scholars discuss the regional monetary integration taking advantage of the Optimal Monetary Area through empirical analysis method. This article is not only analyze from the convergence criteria stipulated in formation from the euro zone, but also taking the East Asian regional politics, history, culture and sense of sovereignty and other non-economic factors into account.