Contents -- Acknowledgments -- List of Figures -- List of Tables -- Contributors -- 1. Introduction Duck-Koo Chung and Barry Eichengreen -- 2. Fostering Monetary and Exchange-Rate Cooperation in East Asia Barry Eichengreen -- Introduction -- Exchange-Rate-Centered Options -- A Parallel Currency -- Harmonized Inflation Targeting -- Conclusion -- 3. The Connections Between Financial and Monetary Cooperation in East Asia Hee-Yul Chai and Deok Ryong Yoon -- Introduction -- The CMI and Post-CMI as Financial Cooperation Initiatives -- Limitations of the CMI -- The Post-CMI -- Toward a RCU -- The RCU as a Catalyst for Financial Market Development -- Conclusion -- 4. Financial Integration and Exchange-Rate Coordination in East Asia Woosik Moon and Yeongseop Rhee -- Introduction -- Growing Interdependence is an Asian Reality -- Intervention Costs -- Increasing Interest Arbitrage -- Techniques of Foreign Exchange Market Intervention in Korea -- Approaches to Monetary Cooperation in East Asia -- Conclusion -- Appendix 4.1: Interest Arbitrage by the Branches of Foreign Banks in Korea Effected through Currency Swaps -- Appendix 4.2: Interest Arbitrage by Korean Banks Effected Through Foreign Currency Loans Linked to Currency Swap Transactions -- 5. An Asian Currency Unit for Regional Exchange-Rate Policy Coordination Masahiro Kawai -- Introduction -- Objectives of Creating an ACU -- Objectives on ACU -- ECU and ACU -- Constructing an ACU Index - Technical Issues -- ECU Weights -- Existing Currency Baskets -- Preliminary ACU Index -- Economic Logic of Introducing an ACU -- Dollar, Yen, or Yuan for East Asia? -- Anchor Currency Choice: A Case for a Currency Basket -- Exchange-Rate Regime Choice: A Case for a Currency Basket -- Potential Role of an ACU for Regional Economic Surveillance -- Potential Role of an ACU for Exchange-Rate Policy Coordination.

Overcoming the Impediments to ACU Creation -- Economic and Non-economic Importance of Currency Weights -- Role of CMI Multilateralization -- Benefits of an ACU for Japan and China -- Views of the United States -- The Way Forward -- 6. Asian Monetary Unification: Lessons from Europe Paul De Grauwe -- Introduction -- East Asia is as Much an Optimum Currency Area as Europe -- Then Why Do We Not Observe Monetary Union in Asia? -- A Brief History of European Monetary Integration -- Exchange-Rate Pegging as Institution Building -- Lessons for East Asia -- Conclusion -- Appendix 6.1. The European Monetary System: Some Institutional Features -- 7. Managing Foreign Exchange Reserves: The Case of China Yu Yongding -- Introduction -- Growth and Reserve Accumulation -- What's Wrong with the Chinese Model? -- Reducing the Growth of International Reserves -- Managing Foreign Exchange Reserves -- Singapore as a Role Model -- Establishment of the State Investment Corporation -- Should we be concerned about SWF? -- Conclusion -- 8. The Integration Process in East Asia: Japan's Experience and Policy Agenda Motoshige Itoh -- Introduction -- The Asian Gateway Initiative -- Changing Attitudes -- Domestic Issues as an Obstacle to Regional Free Trade -- Toward Enhanced Monetary and Financial Cooperation -- Conclusion -- References -- Index.