Research On East Asia Regional Monetary Cooperation And Countermeasure Of China

When financial crisis broke out in Asia, People experienced the damage that the anarchy ofinternational monetary system brought to economy and finance of East Asia. Along with start-upof Euro and discuss of Dollarization among American countries, reinforcing monetarycooperation in East Asia region and constructing its own monetary and financial system arebecoming an urgent mission. In the trend of regional monetary cooperation, as the biggestdeveloping countries in East, even in the world, China should take in charge with the liabilityand responsibility, and should drive the regional monetary cooperation in East Asia to thedirection of what is propitious to China benefits.Based on traditional regional monetary cooperation theory, this paper analyzes thefeasibility and desirability of regional monetary cooperation in East Asia in details and overall.And compared with EMU criterions, we examine whether East Asia satisfies preconditions foran optimum currency area. Meanwhile making use of the latest development of regionalmonetary cooperation theory in the world and adopting dynamic analysis method, we build upVAR model to exam empirically whether East Asia countries are suitable to carry on regionalmonetary cooperation. We come to a conclusion that as a whole region, it is not appropriate tocarry on higher level of monetary cooperation among East Asian countries, but in the light ofreality in East Asia region and that monetary cooperation is a dynamic development process,East Asia countries can carry on lower level of and sub-region monetary cooperation, that is tosay, the route of Multiple Currency Monetary Union is more suitable for East Asian reality.