On an Asian Monetary Union: What does the Evidence Tell us?
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.
KeywordsForeign Direct Investment Monetary Union Financial Integration Currency Union Optimal Currency Area
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