An optimum currency area in East Asia: feasibility, coordination, and leadership role

摘要

Forming a single currency region in East Asia is desirable. The lack of political commitment and experience with political cooperation in East Asia constitute the decisive factors against the formation of a common currency area. The formation of a quasi-monetary bloc remains a viable option to East Asia. It is suggested that a coordinating institution be formed to assess needs and formulate the steps necessary for the formation of a quasi-monetary union. The implementation by the East Asian countries and the coordinating institution will lead to political convergence as well as economic convergence, a necessary process toward establishing common monetary standards. China and Japan continue to play the leadership role in the push for greater regional monetary integration and cooperation.