East Asian Currencies Model Study

With the integration both in the regional and world economy. Money cooperation has becoming very important. Europe Union's practice and successful of the Europe Money is a powerful proof. The far-reaching impact of the Asian financial crisis happened in 1997 made East Asian countries have a clear understanding of the major shortcomings of the regional economy, and deeply aware of the importance of monetary cooperation. After the Monetary Cooperation of East Asia has attrace much attention, The approve of Chiang Mai Initiative ignites the further discussion of this topic and shows the strong desire among the region to enchance the regional cooperation on trade and investment, and lays a good foundation for deeper monetary cooperation. On the study of monetary cooperation in East Asia,need to Resolve two key issues namely Ways of cooperation and collaboration membership. Discussion on these two issues, requires an in-depth understanding the reality of economic fundamentals of East Asian monetary cooperation as well as factors effect Cooperation in the monetary and the pros and cons of co-operation.The paper is on the guidance of the regional monetary cooperation, based on the research about the Status of monetary cooperation in East Asia to discuss the pros and cons as well as Practical obstacles of monetary cooperation in East Asia. The resules of analysis on the existing mode of monetary cooperation in East Asia shows that Current mode is difficult to satisfy the requirements of monetary cooperation in East Asia, so the article presents a new model of cooperation: that is China, Japan and South Korea for cooperation in the East Asian monetary cooperation pilot, And in the article discussed the countermeasures to cope with the monetary cooperation in East Asia. Part of this paper include the following:First, this paper introduced the beginning of a regional monetary cooperation on some of the theories, including the Theory of Optimum Currency Areas. currency crisis theory and theory of international policy coordination.Collating those theories and introduced the different standards of Optimum Currency Areas theory, such as: production factor mobility, economic liberalization, product diversification, similar to the rate of inflation, financial integration. Then briefly discuss Krugman's GG-LL model. The paper also described in detail about the theory of the currency crisis and the international policy coordination's meanings, motivation, and the need to coordinate the program.Second, the paper reviewed the current situation and the development of regional cooperation in East Asia. East Asian's monetary cooperation on the existing model and analysis f each model about their merits and demerits. The discussion then turned to the possible returns and monetary cooperation in East Asia need to pay the cost.The third part of the paper mainly write the barriers of East Asian monetary cooperation in accordance with the relevant standards of optimum currency areas, East Asian regional economic convergence barriers still exist, the political obstacles, obstacles to socio-cultural factors, No. N currencies and the lack of regional institutions such as the supra-national monetary management barriers.The paper researchs several main cooperating patterns existed today deeply and builds a completed East Asia monetary cooperation patterns on its basis. The author considers that under the current situation of regional economic cooperation in East Asia, the key of East Asia monetary cooperationhe is the currency cooperation among China, Japan and South Korea, As long as China, Japan and South Korea would be able to establish a viable monetary cooperation, the cooperation in the East Asian currency will not far away.At last, the paper analyzes China's countermeasure under the tendency of monetary cooperation in East Asia. The economic boom and monetary stability in East Asia is an important external condition for fast, sustainable Chinese economic growth. China should attach much importance to monetary cooperation in eastern Asia; take a positive attitude toward it. By strengthening policy coordination with East Asia countries and pushing actively the RMB regionalization and internationalization, the united eastern currency will finally come into being.This paper is an attempt to fit the characteristics of the East Asian monetary cooperation Patterns, as a reference for Various academics who concern the important issues of East Asian monetary cooperation, and put some countermeasures for China to against the current situation of monetary cooperation in East Asia.