International Monetary Regionalization and Financial Security of Developing Countries

Author: Yu Tongshen
Publisher:
Publish Date: 2005-05-01
Features: In the last two decades of the 20th century and the early 21st century, a massive wave of international currency regionalization swept across the global economy. Initially, this was marked by the escalating dollarization trend in Latin American countries. Then, at the turn of the century, the people of the ancient European continent bid farewell to the currencies of many European countries, which had been in circulation for centuries, and welcomed the brand-new common currency, the Euro. As the new century began, regional economic and financial cooperation in Asia grew increasingly intense, with calls for the creation of a regional Asian currency, the "Asian Yuan," growing louder. Meanwhile, since the 1980s, frequent currency financial crises have occurred across the global economy. Against the backdrop of economic globalization, this book examines the fundamental reasons behind the rise of international currency regionalization at the turn of the century, its basic forms and development trends, as well as its relationship with financial security in developing countries. The book analyzes the practice of abandoning national currency sovereignty, replacing the domestic currency with a foreign currency as legal tender to prevent and resolve financial crises, which is symbolized by dollarization. By comparing this with the practice of sovereign-sharing international currency regionalization represented by European monetary integration, the book identifies the main characteristics and the pros and cons of the two different forms of international currency regionalization. This approach aims to find and determine possible countermeasures for developing countries to prevent and resolve currency financial crises in the context of the historical trend of deepening economic globalization. The book also analyzes the significance of monetary and financial cooperation among East Asian countries for the financial security and sustainable economic development of Asia in the new century, particularly the pathways and potential prospects of such cooperation, and proposes corresponding policy choices for East Asian countries.