Abstract
This chapter reviews the conditions required for a successful monetary integration in the context of the optimal currency area literature and assesses the future prospects with particular reference to recent research on the prospects of a monetary union in East Asia. The chapter also provides the policy implications for G20, judging from the experience of the Eurozone as well as empirical evidence on one of the preconditions for a monetary union in East Asia, the extent of business cycle synchronisation and output adjustments to shocks.
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- 1.
Most of the fastest growing emerging economies are constituents of these regions, in particular, East Asia and Latin America. The Trans-Tasman region mainly comprises Australia and New Zealand, in which the possibility of a common currency has been an occasional subject of discussion. See, for example, Kim and Sheen (2007) for an empirical assessment of this region.
- 2.
Throughout this chapter, other countries in East Asia were not included in the study due to their relative economic insignificance.
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Kim, D. (2014). On an Asian Monetary Union: What does the Evidence Tell us?. In: Callaghan, M., Ghate, C., Pickford, S., Rathinam, F. (eds) Global Cooperation Among G20 Countries. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1659-9_20
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DOI: https://doi.org/10.1007/978-81-322-1659-9_20
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