The Suitability of ASEAN for a Regional Currency Arrangement

Author/Editor:

Paolo Mauro ; Tamim Bayoumi

Publication Date:

December 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the costs, benefits, preconditions, and implications of an Association of Southeast Asian Nations (ASEAN) regional currency arrangement that is assumed to culminate in a regional currency. On economic criteria, ASEAN appears less suited for a regional currency arrangement than Europe before the Maastricht Treaty, although the difference is not large. The transition to European Monetary Union (EMU) indicates that the path toward a common currency is fraught with difficulty. A firm political commitment would seem to be vital to ensuring that an attempt to form a regional currency arrangement is not viewed as simply another fixed exchange rate regime, open to speculative crises.

Series:

Working Paper No. 99/162

Subject:

English

Publication Date:

December 1, 1999

ISBN/ISSN:

9781451857856/1018-5941

Stock No:

WPIEA1621999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

24

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