The Research of East Asian Monetary Cooperation Based on Symmetry of Economic Shocks

摘要

Regional monetary cooperation has been the focus of the international financial sector issues for a long time. And the study on East Asian monetary cooperation has great practical significance to prevent financial crises and to promote regional economic development. This paper establishes VAR model to examine the East Asian economies' symmetry of the supply shock and demand shock. The empirical results show that, the symmetry of economic shocks between the East Asian small nations remains high, and in recent years the most notable change is that the symmetry between the East Asian large members represented by China and Japan increases evidently. From this point of view, this paper argues that further monetary cooperation in East Asia should shift from "crisis driven" cooperation to "power driven" cooperation.