Integration? What Integration?
in Francoise Nicolas (ed): Korea in the New Asia. East Asian Integration and the China Factor, London and New York: Routledge, 69-92.
Posted: 13 Mar 2006 Last revised: 28 Aug 2012
Date Written: April 15, 2009
Two central questions arise when discussing financial integration in East Asia: First, what form of integration is to be achieved? And second, who are the players in the integration process and which country(ies) assume(s) the leadership role(s)? This paper asserts that one field in which the direction of East Asian financial integration could be decided is exchange rate policy. In particular, the paper investigates the possibility that China gradually evolves as the centre of an (informal) East Asian yuan bloc. This could make China the key player in any form of regional co-operation/integration effort, leaving Japan out in the cold, while Korea could still play some kind of mediator or honest broker role between China and the ASEAN countries.
Keywords: East Asia, monetary and financial integration
JEL Classification: F15, F33, F42
Suggested Citation: Suggested Citation