Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Overcoming Chinese Monetary Division and External Anchoring in East Asia*

Overcoming Chinese Monetary Division and External Anchoring in East Asia* There are few recent historical precedents for maintaining the high degree of separation that still prevails between the internal monetary arrangements of Hong Kong and mainland China. This paper explains why this separation is likely to erode and considers the economics of the different forms that monetary unification of China could take. It argues that achieving such unification without resorting to capital controls or expropriation is a precondition for developing a second major international currency in East Asia that would rival the yen. Until the renminbi has been established as an international currency within a unified and sound financial system that has achieved Hong Kong's current standards, there can be no progress toward a regional monetary union in East Asia. An internal goal of Chinese monetary union is banking reform and financial integration, and an external goal is to help emancipate both China and East Asia as a whole safely from the U.S. dollar standard. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asian Economic Papers MIT Press

Overcoming Chinese Monetary Division and External Anchoring in East Asia*

Loading next page...
 
/lp/mit-press/overcoming-chinese-monetary-division-and-external-anchoring-in-east-IQNm8uQhPV

References (70)

Publisher
MIT Press
Copyright
© 2004 Center for International Development and the Massachusetts Institute of Technology
ISSN
1535-3516
eISSN
1536-0083
DOI
10.1162/1535351041747941
Publisher site
See Article on Publisher Site

Abstract

There are few recent historical precedents for maintaining the high degree of separation that still prevails between the internal monetary arrangements of Hong Kong and mainland China. This paper explains why this separation is likely to erode and considers the economics of the different forms that monetary unification of China could take. It argues that achieving such unification without resorting to capital controls or expropriation is a precondition for developing a second major international currency in East Asia that would rival the yen. Until the renminbi has been established as an international currency within a unified and sound financial system that has achieved Hong Kong's current standards, there can be no progress toward a regional monetary union in East Asia. An internal goal of Chinese monetary union is banking reform and financial integration, and an external goal is to help emancipate both China and East Asia as a whole safely from the U.S. dollar standard.

Journal

Asian Economic PapersMIT Press

Published: Jan 1, 2004

There are no references for this article.