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Regional Currency Cooperation Theory

In: Reform of the International Monetary System and Internationalization of the Renminbi

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  • Ruogu Li

Abstract

The theory of optimum currency area (OCA) is the theoretical basis of regional currency cooperation. According to the New Palgrave Dictionary of Economics, the optimum currency area is an “optimum” geographical area. Within this area, the general means of payment is a single common currency, or there is full convertibility among over a dozen currencies with mutually pegged exchange rates that remain unchanged in daily transactions and capital transactions, while their exchange rates with currencies of outside countries remain floating…

Suggested Citation

  • Ruogu Li, 2015. "Regional Currency Cooperation Theory," World Scientific Book Chapters, in: Reform of the International Monetary System and Internationalization of the Renminbi, chapter 14, pages 181-188, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814699051_0014
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    Keywords

    IMF; World Bank; Financial Crisis; International Monetary System; RMB; International Monetary System Reform; China; US; Dollar; Renminbi; Yuan; Currency; Exchange Rate;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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