Editors- Han Gwang Choo and Yunjong Wang. Korea Institute For International Economic Policy (KIEP) 2002.
Though many East Asian countries are now under various exchange rate systems, there also appears to be strong interest in the hard pegs in the region. In view of the recent tendency for a polarization of exchange rate systems – a hard peg for exchange rate stability on one extreme or pure floating on the other extreme- East Asian countries may be tempted collectively to try a hard peg once they are not dissatisfied with their current individual exchange rate systems. Nevertheless, many misgivings have been voices in recent years about the introduction of a common currency arrangement in East Asia. East Asian governments hold divergent preferences with respect to pace, extent and direction of regional financial and monetary cooperation. This is mainly due to the fact that East Asian economic systems, patterns of trade and levels of economic development are far more diverse than those manifest in Europe. Although political willingness could be the most important trigger, as shown In the experience of post war Europe, such a political will may not be conceivable without a smooth convergence of the economic attainment level. In this regard, East Asian has a long way to go beyond the Chiang Mai Initiative and other types of regional arrangements. This edited volume identifies major issues related to regional monetary cooperation and provides comprehensive analyses, policy implications, and some recommendations.
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The
growing interdepen-dence in the world through trade and finance
integration has heightened the need to engage in international and
regional economic cooperation. This was never demonstrated more
clearly than during the Asian crisis of 1997. Furthermore, the launch
of the euro in 1997 made the possibility and desirability of introducing
a regional currency union in East Asia a point of debate. In particular,
there has been voluminous literature on the topic of forming a currency
union in East Asia. However, on the empirical findings and policy
implications of previous studies are mixed.| |