The Possibility Of Monetary Cooperation In East Asia And Path Analysis

The paper is entitled "The analysis of monetary cooperation in East Asia: feasibility and path." Monetary cooperation means cooperation and coordination among governments particularly among central banks,focus on monetary system, monetary policy, exchange rate regimes, and short-term financing etc.â‘ Since the beginning of the 1990s, three important regional economic groups: the EU, NAFTA and the East Asian Economic Zone were setup. Accompanied by the deepening of economic globalization and the evolving world regional economic cooperation continuously, currently, the European Union and NAFTA have created its own regional monetary system. As a result, two of the three important regional economic groups in the world economy have set its own basis currency already. On the other hand, East Asia as one of the world's three major economic zones, its regional economic cooperation started relatively late. At present, although various forms of economic cooperation have been carried out at different levels rapidly, the region has no real monetary cooperation been carried out, comparing with the rest of the world economic regions. East Asian monetary cooperation really started was in 1997 after the Asian financial crisis.Before Asian financial crisis, although there were some proposals and discussions, those were only limited among the researches and thoughts of some experts and scholars. The explosion of Crisis made East Asian countries aware of the necessity and urgency for monetary cooperation, and promote a better understanding of East Asia in the field of monetary and financial cooperation. These people are very concerned about an important issue: whether the forms of cooperation in East Asia is lagging behind actual economic ties between these countries, and which country is qualified with the conditions linked to the extent of forming optimum currency area.Optimum currency areas theory is the most famous theory in the study of regional monetary cooperation, which was conducted in a European monetary integration practice. Recent monetary cooperation in East Asia studies mostly follow up the analytical method of optimum currency areas theory and use it to analyze whether East Asia has the...