ABSTRACT

Ever since the East Asian currency crisis, various observers have advocated the view that regional financial cooperation is necessary to prevent another similar crisis. The Chiang Mai Initiatives, a network of bilateral currency swap arrangements among the ASEAN nations plus China, Japan, and Korea (ASEAN +3) are one form of regional financial cooperation. Various developments have given momentum to policy dialogues in the area of international monetary arrangements among East Asian nations. This chapter aims to consider what regional currency arrangement would be most desirable in East Asia.