Economic Interdependence and the Feasibility of Monetary Cooperation in East Asia

SThere are two levels of economic interdependence in East Asia.The first level lies in the interdependence between the East Asia and the U.S.economy.The second level lies in the interdependence between the intra-regional economies.The global financial crisis indicates that the first level is asymmetry,and not sustainable.Global financial crisis also prompts East Asia to strengthen regional and international economic coordination,and verifies the rationality of interdependence theory.Interdependence of East Asia solves externalities and spillover effects through macroeconomic policy coordination.Thus the feasibility of monetary cooperation in East Asia is higher.