Monetary Cooperation With Economic Integration In East Asia

The article mainly discusses the regional monetary cooperation based on the present economic situation of East Asia. The regional cooperation is the permanent power to maintain the regional stabilization, accelerate regional development and promote human civilization progress.The fundamental power of monetary cooperation roots in the increasingly close international economy relationship. The economic integration in East Asia settles a stable foundation for the monetary cooperation from the economy perspective. And the monetary cooperation is not a pure economic problem; it is also a social and political problem. The reciprocal trust between countries, cooperative desire, especially the politicians' positive promotion, is taking a significant action to the cooperative progress. International monetary cooperation has shrown different feature at different stage of international currency system. At the new period, the globalization is continuously deepened; the international monetary cooperation will develop speedily. Although the shaping terms and standard of Optimum Currency Areas are debated, the theory of Optimum Currency Areas and its development will play an important directive role to the monetary cooperation of East Asia.East Asia currency integration is a complex, long-term progress. Now the development of East Asia economic integration and the increasing interdependent of each state make an advantage for the monetary cooperation. As far as the East Asia economic development is concerned, it is far from forming currency coalition, but there are three sub-regions, which is suitable to process deep monetary cooperation in East Asia. Under this condition 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:Chapter One analyzes the relationship of regional economic integration and monetary cooperation. The two accelerate reciprocally and also restrict reciprocally. The wide way of economic cooperation and the strong cooperative desire of every nation will speed up integration progress. The fundamental condition of every nation in East Asia is distinct. The economic development expresses five different steps. Therefore, there is complement between these East Asia nations. And the dependent relations are more and more close. The trade proportion in East Asia increased remarkably in the recent years. The correlation of economic increasing enhanced gradually. The development of economic cooperation and integration in East Asia strengthens the economic relations of every nation, drives the monetary cooperation, makes a objective requisition of monetary cooperation and makes a steady substantial base for the monetary cooperation.Chapter Two analyzes the regional monetary cooperation from plutonomy. The theory of game is used to set forth the monetary cooperation. The Hatnada theory is used to explain the harmonization ofinternational economic policy. It explains that the game decision-making and negotiation ability of the two nations decide the effect of policy harmonization by graphs. Whether a national member will give up its currency is decided by the comparison of cost and profit during the progress of monetary integration. The monetary cooperation is not only an economic problem but also a political problem from the plutonomy view. The international politics economy and domestic politics economy mingles and interacts which result the monetary integration. The monetary cooperation makes an intrinsic objective promotive action to the Political Union. But without the politics driving the monetary integration doesn't come in true. Monetary cooperation and Political Union drive each other reciprocally.Chapter Three reviews the developing history of international monetary cooperation and analyzes the background and present condition of Eas...