International Legal Aspects of "Monetary" Relations in Northeast Asia

Abstract

This paper maps the international legal framework of monetary relations as between the States in Northeast Asia (China, Japan, Korea) (hereinafter "NEA"). To this end, it focuses on bilateral, regional and multilateral arrangements that are relevant in the monetary relations as between the NEA States, including aspects of the domestic monetary governance apparatus of the respective States as it concerns Central Banks in the region. Additionally, the paper focuses on the capacity of the IMF and its normative framework to manage regional conflicts and integration efforts in the monetary sphere falling short of Currency Unions. This legal mapping of the monetary relations between the States in NEA is followed by some reflections on the ethical aspects of what monetary relations should be informed by generally and in particular as between neighbouring States. More generally, the paper addresses the capacity of the IMF to focus on regional monetary issues; and important monetary challenges that confront NEA from an international legal perspective. This focus involves considering such issues as financing of balance of payments deficits in times of crisis; and monetary co-ordination, currency intervention and responsibilities arising from acquiring an international currency status.