The East Asian Monetary Integration Feasibility Analysis And Path Selection

East Asia occupies a very important position in the world’s economy, which isconsidered to be one of the three world’s largest economic areas. Various forms ofeconomic cooperation in East Asia grow rapidly. However, compared with the resteconomic areas in the world, monetary cooperation in East Asia has been ignored byacademic circles, international economic organizations and governments for a longtime. Recently, the engine of East Asian currency cooperation was started by rapiddevelopment of economy and trade in East Asia, the demonstration effect of the Euroarea and the deepening understanding of East Asia financial crisis, which make EastAsian currency cooperation to accelerate the pace. East Asian countries have begun topay much closer attention to monetary cooperation of East Asia.Under such background, this paper firstly introduced the background, processand present situation of monetary cooperation in East Asia. And then, the paper testedempirically the Euro area and East Asia with the improved traditional and moderntheory and summarized the Euro area practical experience in this way. At the sametime, the paper conducted a detailed feasibility analysis on the monetary integration ofEast Asia and identified subareas which are much more consistent with the theoreticalstandard. Finally, the paper offered an improvement proposal, suggested feasibilitypath selection for East Asian currency cooperation and discussed the proper role ofChina during the East Asian monetary integration process.