Study On Choosing The Proper Exchange Rate System In Eastern Asian Currency Cooperation

The international policy coordination becomes a kind of inevitable request under the economic globalization condition, and the monetary cooperation is an important respect among them. Professor Mundell, the Nobel economics Prize winner in 1999, once prophesied there would appear three currency areas over the next 10 years: Euro Area, U.S. dollar Area and Asian Currency Area, that is to say," Three Islands of Financial Stability " will become basic frameworks of the international monetary system in future. EU and the North American Free Trade Area have built their own regional currency system. However, the Asian region is still in the state of disunity. The ponderous shock of the Asian financial crises made the Eastern Asian countries or areas wake up soberly to the importance of regional currency cooperation. Regional currency cooperation as a dynamic procedure has the long-term and gradual features. Therefore, Asian currency cooperation should follow the rule from primary stage to the advanced stage. This thesis mainly focuses on the exchange rate system in the near future, due to the tremendous differences in politics, social, historical and financial aspects between Asian countries and areas.The paper's key research are the exchange rate coordination mode in East Asia and its feasibility, analyzing separately the "internal anchor", "external anchor" and "combinational anchor" exchange rate coordination mechanism. On the basis, I put forward my own view:To various countries or areas in East Asia, the realistic choice is : (1) to strengthen the Macroeconomic policy coordination;(2)to implement the exchange rate coordination regime of the monetary basket that pegs to "combinational anchor"(including U.S. dollar, Euro and Japanese Yen), which can be regarded as realistic and feasible scheme for Exchange Rate Coordination in East Asia.The full paper is divided into four parts altogether: The author describes the background and the contents in different stages in chapter one, and discusses the theoretical bases and practical significance to choose the proper exchange rate system in chapter two. In chapter three, the author mainly tells about frame of the exchange rate coordination mode in East Asia. And at the last chapter, the author evaluates the advantages and disadvantages of China in the eastern Asian currency cooperation model.