- 저자
- LI Wei(Remin University)
- 발간호
- 2011-09
The recent global financial crisis was a lesson to East Asian countries that the dollar-based international monetary system serves as a transmitter of financial crisis. China, Japan and Korea need to work toward an Asia-3 (A3) Monetary by establishing a Northeast Asian monetary zone that is not dependent on the US dollar.The Demand for an A3 Monetary UnionLeaders in East Asia have to rethink how to achieve financial security in their respective countries. Yet East Asian countries have different and even conflicting understandings about the urgency, necessity, and goals of regional financial and monetary cooperation.The internationalization of the Japanese yen has suffered setbacks, and the internationalization of the Chinese Yuan is yet to start. In light of this situation, it will become a feasible strategy for China, Japan and Korea to jointly a regional monetary union, to compete with the US Dollar, the Euro and the Sterling, to break the international monetary monopolies, and to achieve diversified international currencies. Effective monetary cooperation will reduce the risks of exchange rate fluctuations and decrease financial transaction costs. It will more trade opportunities.A Roadmap toward the A3 Monetary UnionThe A3 Monetary should primarily seek to realize the following functions: exchange rate coordination, a regulatory mechanism for the free movement of capital, and to prevent financial risks, a common reserve fund to decrease the reliance on the accumulation of U.S. dollar assets.There should be some basic principles for the building of this A3 Monetary Union.First, the largest Asian financial powers should agree to cooperate. East Asian currency cooperation should start from China, Japan, and Korea. When the system has matured, it could take in other countries as part of the A3 Monetary Union.Second, cooperation among partner nations should be institutionalized. At each stage of cooperation, achievements should be locked in. The A3 Monetary must establish an independent and formal institution to carry out implementation and regulatory functions.Third, cooperation should be gradually expanded. The establishment of the A3 Monetary cannot be formed overnight it is a long-term process that must be realized in stages, and one should remain committed to a model of developing from low-level cooperation to high-level integration, and from a small number of countries expanding to a larger number of countries.The A3 Monetary should establish an organization with clearly delineated authority to coordinate policy and properly implement agreements. For this purpose, an A3 Currency Committee needs to be set up as an organizing institution of the A3 Monetary Union.This committee would be made up of six people: the finance minister and the central bank head from each of the three countries of China, Japan, and Korea. The committee would hold a regular meeting each quarter, and could organize temporary meetings under special circumstances. The committee would primarily be responsible for promoting the development of the currency union, overseeing the policy implementation, and carrying out macro-level management and other duties. The currency committee could invite the IMF president and the secretary general of ASEAN to be observers, and when necessary it could also invite heads of the EU Central Bank and the U.S. Federal Reserve to be observers.In addition, the A3 Monetary should establish an advisory committee, which will consist of independent economists, leaders of financial institutions, and think-tank researchers from China, Japan and Korea. The number of members should not exceed 12 individuals, to be selected for terms of three years.As discussed previously, in addition to the establishment of the A3 Monetary Union, an A3 currency committee should also be founded to act as the most central organizing body to promote the establishment of the Union. Specifically, the A3 Monetary could achieve the aforementioned goals through three stages.a. Initial StageIn the initial stage, efforts should be focused primarily on establishing the union’s basic institutional framework and corresponding mechanisms for communication and coordination. To achieve this, the following goals must be pursued to advance the progress of the Union.1. Establishment of the basic organizational framework of the A3 Monetary union. The A3 should seek to establish a currency committee composed of the central bank heads and the finance ministers of China, Japan, and Korea, and form mechanisms beneath this committee for other work areas, meetings, and discussion. This framework is the institutional foundation for the advancement of the A3 Monetary Union. Institutions can bring concrete results.2. Establishment of an A3 Monetary Fund. At present, the scope and function of an East Asia currency reserve fund is set at 120 billion U.S. dollars. This amount is insufficient to meet the demands Of China, Japan, and Korea in a financial crisis the A3 would have to rebuild a new currency reserve fund. The creation and investment in shares of the A3 Monetary Fund could be divided among China, Japan, and Korea with a ratio of 4:4:2, respectively.3. Establishment of an exchange and transaction settlement mechanism among the three countries. The currency exchange agreements under the Chiang Mai Initiative were signed bilaterally, and their symbolic meaning is greater than their actual value. The A3 Monetary should expand the scope of currency exchange among the three countries in a three-way multilateral framework, and promote the use of national currencies in trade among the three countries, rather than using the U.S. dollar for transactions.4. Establishment of an A3 currency unit. The currency unit should be used primarily to calculate foreign exchange reserves, measure gross domestic products (GDP), and later to price commodities.5. Establishment of a mechanism for reporting and information sharing of the three countries’ currency and financial policies. The establishment of a stable exchange scheme is the foundation of the A3 Monetary Union. Toward this end, the three countries must maintain frequent and smooth information exchanges concerning their currency and financial policies.6. Establishment of a mechanism to supervise and control the flow of the member countries’ capital. One of the motivations for the Monetary is to prevent financial risks and advance institutional innovation in capital supervision and management.7. Establishment and development of an A3 joint bond market.8. Establishment of a trade cooperation committee, to promote an East Asian free trade zone. An East Asian free trade zone will vigorously promote deeper development of the A3 Monetary Union.In the process of promoting the establishment of the A3 Monetary Union, political cooperation among China, Japan, and Korea should develop at the same time. In the beginning stages, regular annual summit meetings of the heads of state among China, Japan, and Korea should be increased to regular meetings twice a year. The three countries’ foreign ministers could organize an annual strategic dialogue between China, Japan, and Korea, to carry out coordination on political issues.b. Intermediay StageThe goal of the intermediary stage of the A3 Monetary is to make efforts to establish an A3 currency system, and to expand this system to include other countries and areas in East Asia.During this stage, the A3 Monetary should achieve the following goals:1. Setting a target floating range of the three countries’ currencies, and gradually narrowing the range. To maintain the stability of the exchange rates, the three countries could first establish a floating range of 10%, and then gradually reduce it to 5%. In order to the A3 currency unit and calculate the ratio of the three countries toward the common currency, a specialized A3 currency mechanism should be set up to control the currency anchor, gradually developing into an East Asian central bank.2. Promoting the free conversion of the three countries’ currencies. During the intermediary stage of the A3 Monetary Union, the three countries should encourage the member countries to freely circulate capital among themselves. At the same time, through strengthening the trade and investment relations of the three countries, a common financial transaction network can be established, gradually carrying out the integration of the capital markets.3. Increasing the funding scope of the A3 currency, to enable the scope of its lending to cover other East Asian countries. On one hand, the fund can consider attracting other non-member states to put up capital and become shareholders on the other hand, the fund can also provide short-term loans to other countries in East Asia and help them to maintain their balance of payments. These measures can help the A3 Monetary to provide public goods in East Asia.4. Recruiting other countries with mature conditions as well as regional economic bodies. In the intermediary stage, those that can be first considered to join the A3 Monetary include: Hong Kong, Macao, Taiwan, and other economically and financially developed regions. They should be encouraged to adopt exchange rate policies which link up with the A3 Monetary Unit, and participate in the A3 currency committee. Gradually, Singapore, Thailand, Malaysia, and other relatively economically developed countries should be encouraged for participation.5. Issuing bonds denominated in the A3 currency unit. The A3 currency unit-denominated bonds will help to popularize the A3 currency unit, reduce the currency transaction costs among its members, expand the East Asian financial market and decrease dependence on U.S. dollar reserves, thereby providing a foundation for the emergence of a unified East Asian currency.6. Building an East Asian free trade zone.c. Advanced StageThe long-term goal of the A3 Monetary is to a unified currency zone across all of East Asia. The establishment of this currency zone would mean that countries within the zone have ceded part of their monetary sovereignty. An East Asian currency zone could take part in global economic competition and advance fundamental reforms to the international monetary and financial order.1. Establishing a central bank for East Asia on the basis of an A3 currency mechanism and issuing a common currency that could freely circulate within the zone on the basis of an A3 currency unit.2. Strengthening social policy coordination and standardization of the countries within the Currency zone, and realizing complete economic integration. On the basis of adequate economic integration, the coordination of social policy and political integration become necessary requirements. The establishment of the East Asian community will enter into a new and higher stage.이 글에 포함된 의견은 저자 개인의 견해로 제주평화연구원의 공식입장과는 무관합니다.* LI Wei is an assistant professor of International Political Economy at the School of International Studies, Renmin University of China, Beijing. LI Wei earned his Ph.D at Fudan University, Shanghai. His current research focuses on the reform of the international monetary system and the politics of the RMB’s internationalization. He is the author of The Institutional Changes and the U.S. International Economic Policies (Shanghai People’s Publishing House, 2010).