International Cooperation Project of the Chinese Academy of Social Sciences: Asian financial cooperation and its role in the international economic

    Presenter: Li Yang, Wang Guogang and Hu bin

    Since the explosion of global financial crisis, the construction and cooperation of financial system has becoming the worldwide hot issue, especially the research on the reform and the cooperation of financial supervision system. Asian region, which is known as the driving force of global economic growth, has been playing an important role in global economy. However, its position does not conform to its economic power in the international financial system. The lack of dominant world currency, in particular, will make the Asian economy and financial system being more vulnerable to the transmission and the shock of international financial volatility. Back to the Asian financial crisis in 1997 and several financial turmoil around that time, it was seen that the imbalance between real economy and financial development had some impacts on it, which had close inner link with global economic imbalances. It was not only the reflection of the latter in the Asian economy, but also a part of inherent mechanism of it in a sense. Therefore, it is crucially significant that Asian economy strengthens internal monetary cooperation and improves its position in the international financial system, which will contribute greatly to the growth and the stability of Asian economy. What’s more, it is also an indispensable and crucial step for correcting the distortion between the international division system and financial system as well as maintaining economic and financial stability in the world.