Impact of the Asian Currency Unit (Acu) on the East Asian Economies: Lessons from the European Monetary Unit (Emu).
1. Abstract:
There has been a great deal of interest in the formation of a currency union in Asia since the countries of the European Union (EU) decided to introduce a single currency for Europe. Most of the studies have been to identify the relationships between the existing economic integrations as NAFTA and EU and the ASEAN.
The objective of this paper is to summarize proposed future evolution of Asian currency arrangements and examine it theoretically and empirically from a broad perspective. I believe that this kind of study will be indispensable for enhancing current discussions.
The paper compares the following countries for correlation among the countries for GDP, International and intra-regional trade, BOP as % of GDP, and Reserve accumulation for the time-period from 1989-2006.
1. Indonesia
2. Malaysia
3. Singapore
4. Thailand
5. Japan
6. Philippines
Finally to compare the learning from the EMU we would revisit the formulation of the EU and compare our findings with the ASEAN, also to suggest the role of Japan similar to the role of Germany in the formulation of EU, due to various reasons discussed further.
Table of contents Page no.
1. Abstract 1
2. Introduction 3
3. East Asia-EU comparison 4
4. Lessons from EU integration 5
5. East Asia-time to integrate economically .6
I. Empirical findings ....7
II. Role of Japan ...9
6. Impact of Institutionalization ..9
7. Obstacles ..10
8. Limitation of the Study 11
9. Conclusion .12
10. Appendix
11. Bibliography
2. Introduction:
Enlargement, economic and political integration are distinctive features of the global political and economic scene in the world as we see today. This paper aims to examine some factors relating to the feasibility of the formation of a currency union encompassing six Asian countriesIndonesia, Malaysia, Philippines, Singapore, Thailand,
There has been a great deal of interest in the formation of a currency union in Asia since the countries of the European Union (EU) decided to introduce a single currency for Europe. Most of the studies have been to identify the relationships between the existing economic integrations as NAFTA and EU and the ASEAN.
The objective of this paper is to summarize proposed future evolution of Asian currency arrangements and examine it theoretically and empirically from a broad perspective. I believe that this kind of study will be indispensable for enhancing current discussions.
The paper compares the following countries for correlation among the countries for GDP, International and intra-regional trade, BOP as % of GDP, and Reserve accumulation for the time-period from 1989-2006.
1. Indonesia
2. Malaysia
3. Singapore
4. Thailand
5. Japan
6. Philippines
Finally to compare the learning from the EMU we would revisit the formulation of the EU and compare our findings with the ASEAN, also to suggest the role of Japan similar to the role of Germany in the formulation of EU, due to various reasons discussed further.
Table of contents Page no.
1. Abstract 1
2. Introduction 3
3. East Asia-EU comparison 4
4. Lessons from EU integration 5
5. East Asia-time to integrate economically .6
I. Empirical findings ....7
II. Role of Japan ...9
6. Impact of Institutionalization ..9
7. Obstacles ..10
8. Limitation of the Study 11
9. Conclusion .12
10. Appendix
11. Bibliography
2. Introduction:
Enlargement, economic and political integration are distinctive features of the global political and economic scene in the world as we see today. This paper aims to examine some factors relating to the feasibility of the formation of a currency union encompassing six Asian countriesIndonesia, Malaysia, Philippines, Singapore, Thailand,
Bibliography: 9. Bayoumi, T., and Barry Eichengreen. 1993. "Shocking Aspects of European Monetary Unification." In Adjustment and Growth in the European Monetary Union, ed. Francisco Torres and Francesco Giavazzi. Cambridge: Cambridge University Press. 15. Bergsten, C.F. and Park, Y.C. 2002, "Toward creating a regional monetary arrangement in East Asia", ADB Institute Research Paper 50. 20. Agarwala, R. (2003), "Road to a Single Currency for South Asia," RIS Policy Briefs, No.9. 21. Alesina, A., R.J. Barro, and S. Tenreyro (2003), "Optimal Currency Areas," NBER Macroeconomics Annual 2002, 301-349. 22. Baek, S.G. and C.Y. Song (2002), "Is Currency Union a Feasible Option in East Asia?," in H.G. Choo and Y. Wang, eds., "Currency Union in East Asia," pp.107-146, Korea Institute for International Economic Policy. 23. Apel, Emmanuel (1998), European Monetary Integration 1958-2002, Routledge, in London, 24. Cahen, D., (1991), "The ECU and the Consumer," C 25. Chow, H. K. and Y. Kim (2003), "A Common Currency Peg in East Asia? Perspectives from Western Europe," Journal of Macroeconomics, 25, pp.331-350. 26. Dammers, C. R. and R. N. McCauley (2005), "Basket Weaving: the Eurobond Market Experience with Currency Baskets," Manuscript. 27. Dammers, C 28. de Brouwer, G. (2004), "Does a Formal Common-Basket Peg in East Asia Make Economic Sense?," in G. de Brouwer, eds., Financial Markets and Policies in East Asia, pp.286-314, Routledge.