EXCHANGE RATE REGIMES AND AND REGIONAL MONETARY COORDINATION: OPTIONS FOR CHINA AND EAST ASIA

Eiji Ogawa

The monetary authorities in East Asian countries have been strengthening their regional monetary cooperation since the Asian Currency Crisis in 1997. Ogawa explains the actual exchange rate policy conducted by the monetary authorities of East Asian countries. He focuses on especially the Chinese monetary authorities after the Chinese exchange rate system reform on July 21 2005 as well as a long-run effect of productivity growth on the Chinese currency. He points out "coordination failure" in choosing exchange rate policy among East Asian countries and necessity of regional coordination. A regional currency unit (Asian Monetary Unit: AMU) and its deviation measurements are supposed for coordinated exchange rate policies in East Asia to enhance the monetary authorities' surveillance process for their regional monetary cooperation.