The Suitability of ASEAN for a Regional Currency Arrangement
December 1, 1999
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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.
Subject: Currencies, Economic integration, Exchange rates, Foreign exchange, Monetary unions, Money, Real exchange rates
Keywords: ASEAN, ASEAN context, ASEAN countries' exposure, ASEAN country, ASEAN member, ASEAN process, ASEAN's trade, Asia and Pacific, common currency, country, Currencies, currency, currency arrangement, currency union, East Asia, Eastern Europe, EMU, EMU country, EMU process, EU institution, Europe, exchange rate, exchange rates, exposure to fluctuation, Monetary unions, Real exchange rates, single currency, Western Europe, WP
Pages:
24
Volume:
1999
DOI:
Issue:
162
Series:
Working Paper No. 1999/162
Stock No:
WPIEA1621999
ISBN:
9781451857856
ISSN:
1018-5941
