A Study Of The East Asian Dollar Standard

In the1990s, economic globalization is slow,based on the pursuit of interests,The regional economic cooperation in key areas is rising. In this regard, the EU andNorth America have greater progress. For example, in1999, EU finally achieved thegoal of monetary integration. That is the birth of the euro and the establishment ofthe European Central Bank. Then, EU has substantial progress in regional economiccooperation. In contrast, since the1990s, East Asia although some development inregional economic cooperation, but compared with the EU and North America, thereis a big gap. The born of "Euro" make optimal currency area theory feasibility inreality, therefore, East Asia also hope through the East Asian regional monetarycooperation to counter the impact of dollar standard. Accompanied with Post-Bretton-Woods System(Bayoumi,1992) or Revived Bretton-Woods System (Dooleyet al,2004). Dollar standard in East Asia and the world highlighted his position. EastAsia also got the rapid development of the economy. But with the duration, thedollar standard system will expose his flaws, East Asia fall into economicimbalances, frequent financial crises, inflation and other crises.In view of the European Union and North America, compared with thoseeffective regionalization, East Asia also have begun the road of monetary andfinancial cooperation. Japan first launched the idea of monetary cooperation, fromconception to Asian currencies New Miyazawa Initiative, then to the success of theChiang Mai Initiative, which no doubt contributed to the process of monetary and financial cooperation in East Asia. And, for now, the Asian bond market can beregarded as higher achievements of monetary and financial cooperation in East Asia.It has substantive role to resist the financial crisis and defuse financial risks.The purpose of this paper is to review the emergence and development of theEast Asian dollar standard, explore intrinsic mechanism of dollar standard in Eastactivity, understand the East Asian dollar standard system fundamentally. Thenanalyze regional monetary and financial cooperation that East Asia use to get rid ofthe dollar standard system, find factors restricting the development, hope to providehelp for the further development of East Asian monetary and financial cooperation.This paper analyzes the bottleneck of monetary and financial cooperation in EastAsia, the American pressure on this region country’s development, and interpret EastAsia’s dependence on the U.S. dollar-based system from the supply and demandlevels; and consider in the short term East Asian cannot get rid of the dollar standard,But should be attached with dollar standard system and develop those economy, andslowly find breakthroughs. finally, this paper further explore the status and role ofChina in this process.