Zhongyuan Lun (Research on the Implementation of a Unified Currency in Mainland China, Hong Kong, Macau, and Taiwan)

Author: Zeng Qingbin
Publisher:
Publish Date: 2004-03-01
Features: This book consists of seven chapters. Chapter 1 introduces theories of economic integration and monetary integration, including an overview of the Optimal Currency Area theory, which serves as the theoretical foundation of the entire book. Chapter 2 reviews the process of European economic and monetary integration, analyzing the benefits and costs of the European Economic and Monetary Union, providing a reference for the subsequent study of the "Zhongyuan." Chapter 3 identifies the proposed unified currency region as the mainland China, Hong Kong SAR, Macau SAR, and Taiwan Province, analyzing the current status of these regions from four aspects—natural conditions, cultural conditions, economy, and politics. This chapter serves as the premise and foundation for the in-depth discussions in the following chapters. Chapter 4 provides a concise introduction to the historical and current status of the currencies of the mainland China, Hong Kong SAR, Macau SAR, and Taiwan Province, and on this basis, argues that the Hong Kong Dollar, Macau Pataca, New Taiwan Dollar, and Renminbi cannot serve as the name of the future unified currency of China, proposing that the name of the future unified currency of China should be "Zhongyuan." Chapter 5 first adopts a combination of theoretical and empirical analysis to comprehensively assess the feasibility of implementing the "Zhongyuan" in the mainland China, Hong Kong SAR, Macau SAR, and Taiwan Province. The analysis is based on the Optimal Currency Area theory but is not limited to it. It then examines the existing problems in implementing the "Zhongyuan" in these regions and concludes that with the passage of time, these issues will gradually be resolved, making it feasible for the mainland China, Hong Kong SAR, Macau SAR, and Taiwan Province to implement the "Zhongyuan" in the medium term. Chapter 6 discusses the necessity of implementing the "Zhongyuan" in the mainland China, Hong Kong SAR, Macau SAR, and Taiwan Province, i.e., why these regions need to implement the "Zhongyuan," or the benefits that will be derived from its implementation. Chapter 7 outlines the practical implementation and strategies for the mainland China and Taiwan Province to adopt the "Zhongyuan," starting from four steps: establishing a China Free Trade Area, realizing the exchange of the Renminbi, implementing the "Zhongyuan," and achieving the internationalization of the "Zhongyuan."