East Asian Monetary Cooperation And The Choosing Of Policy For China Under The Financial Crisis

After the 1997 Asian financial crisis, Asian countries profoundly feel the importance of cooperation of the area and currency exchange rate. And monetary cooperation in East Asia has been making progress since the 21st century. Along with the deepening of the global financial crisis caused by the credit crisis of United States, especially the increasingly impact on the economics of East Asian countries, cooperating between East Asian currencies has become an increasing concern of them, and it has become the consensus to carry out a new phase of deeper regional monetary cooperation.China, as a growing economic power in the region, has an important impact on economic development of Asia. Along with China's growing economic strength, the increasing trade volume between China and other East Asian economies and the increasing degree of industrial linkage as well, China may be able to become a major market providers East Asian. What's more, the stable growth of Chinese economy will become the regional stabilizer of Asian and the prudent monetary policy become regional monetary policy anchor.Using tools of qualitative and quantitative analysis, theoretical and empirical analysis, the paper systematically studies the following aspects. First gives the Theory of Optimum Currency as a theoretical basis of the monetary cooperation in East Asian. And then, through studying the present situation of East Asian currencies cooperation and the usual three modes of regional monetary integration, the paper come to the conclusion that the East Asian monetary cooperation should be developed in the manner of multi-currency union. After that, the author studies, from the angle of China, the possibility for Asia to establish optimal-currency areas and the route of empirical analysis, pointing out that China's participation in monetary cooperation in East Asia is faced with two strategic options. Finally, from the perspective of China, the paper put forward specific ideas and strategies implement to promote the RMB currency becoming the core of East Asian currencies' cooperation as early as possible.