Asian Monetary Integration

Asian Monetary Integration

Coping with a New Monetary Order after the Global Crisis

Woosik Moon and Yeongseop Rhee

The authors examine the history, conditions and current efforts towards monetary integration in Asia and explore possible future paths, highlighting the roles and perspectives of East Asian countries in the integration process. They consider how East Asian economies could establish their own zone of monetary stability, and show that this stability cannot be separately addressed from the issues of economic growth and solidarity. Against this backdrop, the book tackles the issues of East Asian monetary integration underpinned by the broad framework of economic growth and solidarity.

Chapter 4: Globalization and regionalization of East Asian economies

Woosik Moon and Yeongseop Rhee

Subjects: asian studies, asian economics, asian politics and policy, economics and finance, asian economics, international economics, money and banking, politics and public policy, asian politics


For quite a long time after the Second World War, East Asian countries did not consider the need for a regional economic and monetary order. The emergence of the GATT and the Bretton Woods systems caused this silence; they helped to stabilize the world economy and to ensure a stable growth in the region. Of particular importance was the Bretton Woods system, which was put forward by John Maynard Keynes of the UK and Harry Dexter White of the US. It established a world economy system based on a fixed exchange rate system with gold and the US dollar as the anchor for other currencies. The pegging of currencies to the US dollar in East Asia was still an unshakable principle even after the breakdown of the Bretton Woods system in 1973. However, increasing economic interdependency among countries in East Asia initiated some movements towards regionalism. As Katzenstein (2000) stated: ‘while the old regionalism emphasized autarchy and direct rule, the new one relies on interdependence and indirect rule.’ The financial crisis in 1997 was crucial, and sharply increased awareness on regional actions. Before looking at the needs for and conditions required for regional monetary and fi nancial integration, this chapter examines how the rapid growth and development of East Asian economies has deepened economic interdependency and how they have overcome crises and transformed economic structures in the region.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information