Yen Bloc Or Yuan Bloc An Analysis Of Currency Arrangements In East Asia

This paper examines the role of Japan against that of China in the exchange rate regime in East Asia in light of growing interest in forming a currency union in the region. The analysis suggests that currency unions with China tend to generate higher average welfare gains for East Asian countries than currency unions with Japan or the United States. Overall, Japan does not appear to be a dominant player in forming a currency union in East Asia, and this trend is likely to continue if China's relative presence continues to rise in the regional trade.

This book explores the opportunities and limits of currency cooperation in East Asia. Currency issues play an important role in the region. The Asian crisis of the late 90s was rooted in deficient currency arrangements. The Chinese RMB is not freely convertible yet, but policymakers in China nevertheless aim for a more international role of the Chinese currency. The recent change of direction in Japanese monetary policy caused a drastic depreciation of the Yen and led to warnings against a possible “currency war”, thus demonstrating that currency issues can also easily lead to political frictions. Most trade in and with the East Asian zone on the other hand is still conducted in US $. Against this background different modes of currency cooperation serve the goal of smoothing exchange rate fluctuations and capital flows. They are an important element to promote financial stability and to reduce the transaction cost for foreign trade or investment. The contributions of this book analyze the environment and design of currency cooperation in East Asia and their effects from a macro-and microeconomic viewpoint.

China's strategy towards East Asian regional cooperation since the Asian Financial Crisis of 1997-98Since the Asian Financial Crisis of '97-98 China has taken a leading role in East Asian economic cooperation initiatives, centred around the powerful ASEAN Plus Three mechanism (The Association of Southeast Asian Nations, plus South Korea, Japan and China). This brand new book from the International Poverty Reduction Centre of China's Qianqian Liu outlines exactly how and why China has pursued economic and diplomatic cooperation throughout the post-crisis years. Methodical and richly detailed, it offers a unique empirical analysis of China's actions and involvements with ASEAN Plus Three and the East Asian Summit.Author Qianqian Liu's integrated theoretical approach captures and pieces together the intricacies of Chinese interactions with its East Asian partners - enabling the reader to better understand the dynamics of China's regional behaviour and foreign policy. Together with research-based insight and data covering all aspects of this critical subject, the author proposes two key assertions. Firstly that China-US relations have played a significant part in China's increasingly cooperative approach to China-East Asia relations. And secondly, that China has maximised mechanisms of regional economic cooperation as a means of enhancing its influence in East Asia.Key features and benefits:- Unveils China's perspectives on regional cooperation by extensively exploring Chinese source material and materials - information only now available thanks to increased openness and liberalisation- Offers a key contribution to wider theoretical debates on China's rise and regional intensions- Examines the vital interconnections between the key contemporary International Relations theories - realism, liberalism and constructivism - rather than examining them as separate elements to help fully explain China's strategies and goals- Analytical coverage of China's involvement with both ASEAN Plus Three and the East Asia Summit- Offers comparisons between European regionalism and East Asian regionalism- Reveals Chinese perspectives on how China-US relations have helped shape China's approach to East Asia economic cooperationRegional Cooperation and China's Strategy Towards East Asia is published as part of a brand new series from Paths International, China and International Organisations Series. Published in association with China's Social Sciences Academic Press. Contents: 1, Introduction2, The Historical Development of East Asia and the Rise of China before 19973, The Asian Financial Crisis, China's Accession to the WTO and China's Participation in Regional Cooperation from 1997 to 19994, China's Regional Strategy from the end of 1999 to the end of 20055, China's Participation in Regional Cooperation in East Asia from the end of 2005 to mid-2009 6, Conclusions

In this 21st century of opportunity and turbulence, business firms need to equip themselves with new competencies that were never thought of before. For this reason, this book is timely as it introduces new insights into new problems in the aspects of performance and quality improvement, networking and logistics in the interconnected world, as well as developments in monetary and financial environment surrounding private enterprises today. Readers shall find that reading this book is an enlightening and pleasant experience, as the discussions are delivered in a clear, straightforward, and "no-frills" manner - suitable to academics and practitioners. If desired, the book can serve as an additional piece of reference for teaching and research in business and economics.

What is the extent of currency diversification in the international monetary system? How has it evolved over time? In this paper, we quantify the degree of currency diversification using regression methods of currency co-movements to determine the extent to which national currencies across the world belong to a reserve currency bloc. We then use these estimates to calculate the economic size of each currency bloc. A key contribution of our paper is that we quantify the size of the Chinese renminbi bloc. Our analysis suggests that the international monetary system has transitioned from a bi-polar system - consisting of the U.S. dollar and the euro - to a tri-polar one that includes the renminbi. The dollar bloc is estimated to continue to dominate, having the largest share in global GDP (40 percent), followed by the renminbi (30 percent) and the euro blocs (20 percent). The geographical area of influence for the RMB bloc appears to be most evident among the BRICS’ currencies. The British pound and the Japanese yen blocs appear to play minor roles.

The role of the Japanese yen as an international currency is assessed. It is found that the determinants of international-currency use imply some increase for the yen’s use in international finance; however, the implications for the yen’s use in international trade are mixed. It is also shown that, despite Japan’s emergence as the world’s largest net creditor nation, Japan’s capital outflows have not significantly facilitated the yen’s internationalization. Data are presented showing that, although the yen’s use as an international currency has increased, it is still rather modest. Wider use of the yen as a regional currency in Asia has occurred, though a “yen-zone” does not appear to be emerging.