The Theory Construction And Achievement Path Of The Optimum Currency Area For The Four Regions Of Cross-Straits

Since the 1990 s, the trend of global economic integration gets continuously strengthened,and it becomes a common trend to establish regional monetary union. In 2008, the US subprime mortgage crisis triggered the turmoil of the global economic and set off a wave of reconstruction of the international monetary system. The dollar standard gets shocked. At the same time, it accelerates the process of regional monetary cooperation and exploring the stable anchor.Currently, the Chinese mainland has become the largest trading partner of Hong Kong, Macao and Taiwan, the Four Regions of Cross-Straits trade and personnel exchanges become more frequent, the breadth and depth of bilateral or multilateral cooperation constantly extends.The current "one country, four currency" pattern implies increasingly prominent exchange rate risk and foreign exchange risk.It is necessary to re-examine and study on the rationality of the current monetary situation.Firstly, this paper reviews the domestic and external research on international monetary cooperation, monetary union, the formation and development of optimal currency area,and analyzes relative theory under the framework of the Four Regions of Cross-Straits; Secondly, On the basis of the optimal currency area theory study, this paper summarizes the mechanism of the optimum currency area theory and related example.Thirdly, this paper sums up some advantages at the geographic, popularity, economic and trade exchanges, and some facing difficulties like the institutional difference and political obstacles.Then this paper analyzes comprehensively the inner atmosphere of constructing the optimal currency area for the the Four Regions of Cross-Straits. Thirdly, this paper sums up some advantages at the geographic, popularity,economic and trade exchanges, and some facing difficulties like the institutional difference and political obstacles.Then this paper analyzes comprehensively the inner atmosphere of constructing the optimal currency area for the the Four Regions of Cross-Straits. Fourthly,based on the optimal currency area theory and related research, this paper analyzes the market openness, the degree of financial integration, the cost and benefits of building an optimal currency area. Then the empirical analysis analyzes the economic impact of symmetryconditions and real degree of monetary anchor though a structural vector auto regression model and monetary anchor effect model. Finally, this paper puts forward some basic conceptions for constructing the optimal currency area, summarizes the conclusions.The study concluded that, it already has been provided with some conditions, like economic openness, the degree of financial integration, to construct optimal currency area. Such gaps are gradually reduced, and the overall revenue is greater than the overall cost. Meanwhile, the Four Regions of Cross-Straits also performs overall a certain symmetry facing economic shocks, and HKD, Macanese pataca,TWD performs strengthened on tacit anchoring degree for RMB to,which in terms of constructing optimal currency area has a significant positive effect.