The Study On The Theory And Possibility Of East Asian Monetary Cooperation

under the background of global finance integrated, it appears regional exchange rate coordinate arrangement and regional monetary cooperation. The successes of Eurosand the "dollarisation" of Latin American countries are the obvious trends of the regional currency cooperation. As an important polar of international economy, it is necessary for Asia various countries (or area) to strengthen financial coordination and cooperate in this area. Especially after the financial crisis in 1997, the countries in Asia all realize the importance of the currency cooperation in Asia, and which will help to coordinate the monetary policy with each other and avoid the financial crisis. Although it is a general trends to take the East Asian monetary cooperation, there still exist many practical difficulties and encumbrance factors.This thesis is divided into three parts. Part I: The meaning, importance of East Asian monetary cooperation will be mentioned. And the existing research in the world, the method and structure of this thesis will also be introduced. The part will give a general description for readers and the following content.Part II is the main text of the thesis and divided into three chapters.Chapter two will introduce the development and situation of East Asian monetary cooperation. This paper gives a survey on the theory of optimal currency area or currency union. The previous studies mainly focus on the criteria to judge whether several countries can form an optimal currency union, but this approach is too strict and often misleading, We argued that when deciding whether to join a currency union or not, countries should calculate t}le cost and benefit from their state interest. We provide a framework for the cost—benefit an alysis and use it to analyze the costs and benefits of the East Asian Currency Union.Chapter three will analyze the target and feasibility of East Asian monetary cooperation; then use Optimum Currency Area indexes to compare East Asian monetary cooperation with Euro area monetary cooperation in order to find out the feasibility and difficulties of East Asian monetary cooperation with a mass of existing data.Chapter four will try to resolve some problem; it begin with a question: with the development of the economic integration, Could Inland China and Hong Kong, which have unified sovereignty, make the first step forward in this respect? could these two areas possibly use one single currency, just like the European Union when everything was ready for its economic integrity?By applying theories of the most optimal monetary area, this chapter makes an analysis of the symmetry of the economic impact on both In land China and Hong Kong, and explores the feasibility of the integration of RMB and Hong Kong dollars. research indicates that perfect symmetry is still lacking with regard to the economic impact on these two areas.Part III will make a summary of the whole thesis in order to give readers a general picture of the content. And the creation and shortage would also be indicated.