Crisis and Recovery in the Euro-zone: Lessons for Monetary Cooperation in East Asia

　　Abstract: The Euro crisis prompted by the sovereign debt crisis in Greece has been a major test of economic and monetary cooperation in the European Union, deeply reflecting the two problems that have emerged since the establishment of the European Economic and Monetary Union: disparate levels of economic development across member states, and the shortcomings of the EU's cooperative framework. The Euro crisis offers lessons for monetary and financial cooperation in East Asia. While considering European monetary cooperation as a model, East Asia should consider strengthening information sharing and policy cooperation within any possible common currency zone, using CMI and CMIM as foundations for speeding the development of a framework for East Asia currency cooperation and perfecting a regional monitoring system; at the same time economic integration in the region might be deepened by promoting regional cooperation between states on currency exchange and capital account liberalization, by steadily increasing financial market integration and by gradually decreasing exchange fluctuations between states.

　　Author: Liu Hongzhong is professor and the Deputy Dean of the School of International Relations at Liaoning University;

　　Yang Gongyan is a Master Student majoring in World Economics at the Liaoning University School of International Relations