East Asia Monetary Cooperation after the Global Financial Crisis: An Asian Model?
Author: Qu BoSilver Editor Source: Contemporary Asia Pacific StudiesTime :2014-04-09 14:20:00
Abstract: Over the ten plus years since the beginning of the Asian Financial Crisis, East Asian countries have continuously promoted monetary coo-peration, and have already established a selfmanaged regional reserve pool on the basis of the Chiang Mai Initiative Multilateralization agreement, and have enhanced capacity to collectively resist financial crisis. However, at present there are still disputes over the assessment of the present status quo of East Asian monetary cooperation and expectations for its future prospects. Much reflection must be done to answer the following questions: How do we characterize the nature of East Asian monetary cooperation? Is there an East Asian model of monetary cooperation? How do we assess East Asian monetary cooperation? Based on experience, the monetary system is a hierarchical one; as such, we must understand the nature of monetary cooperation and assess its progress incorporating consideration of the relationship between leaders and followers within the regional system. At present, the relationship between leader(s) and followers within the East Asian monetary system has yet to be defined, and as a result the system is still in a period of infancy. Developmental progress will depend on the creation of shared expectations between states which lead and follow in the regional monetary system. The present configuration for cooperation is helpful for establishing standard negotiation procedure, shaping shared expectations and sharing information.
