Prospects for Monetary Cooperation in East Asia
AbstractThe purpose of this paper is to reexamine the exchange rate policy of the Republic of Korea, and its role in promoting financial and monetary cooperation in East Asia in the wake of the 2008 global financial crisis. The Republic of Korea would not actively participate in any discussion of establishing a regional monetary and exchange rate arrangement as it is expected to maintain a weakly managed floating regime. The People’s Republic of China (PRC) has been fostering the yuan as an international currency, which will lay the groundwork for forming a yuan area among the PRC; the Association of Southeast Asian Nations (ASEAN); Hong Kong, the PRC; and Taipei,China. Japan has shown less interest in assuming a greater role in East Asia’s economic integration due to deflation, a strong yen, slow growth, and political instability. Japan would not eschew free floating. These recent developments demand a new modality of monetary cooperation among the Republic of Korea, Japan, and the PRC. Otherwise, ASEAN+3 will lose its rationale for steering regional economic integration in East Asia.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 314.
Length: 27 pages
Date of creation: 23 Oct 2011
Date of revision:
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More information through EDIRC
exchange rate policy; republic of korea; financial monetary cooperation; east asia; global financial crisis; regional economic integration;
Find related papers by JEL classification:
- F30 - International Economics - - International Finance - - - General
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-01 (All new papers)
- NEP-CWA-2011-11-01 (Central & Western Asia)
- NEP-IFN-2011-11-01 (International Finance)
- NEP-MON-2011-11-01 (Monetary Economics)
- NEP-SEA-2011-11-01 (South East Asia)
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