East Asian Monetary Regimes and Comparison with the European Case: A Stock-Flow Consistent Approach

The Asian crisis of 1997 has shown the limits of a simple dollar peg policy and of a market-driven regional integration without formal institutions. During the 2000s a lot of efforts have been devoted to improve monetary and financial cooperation at the regional level, especially with the Chiang Mai and the Asian Bond Market initiatives. But results have been limited, mainly due to political issues associated to the competition between China and Japan. The financial crisis of 2008 has given new interest to the question of monetary cooperation at the regional level.