{
  "title": "Real Effects of Common Currencies in East Asia",
  "publication": "IMF Working Papers, July 1, 2007",
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  "summary": "Since the 1997 Asian currency crisis, new interest has emerged in the formation of a common currency area in East Asia. This paper provides estimates of trade and welfare effects of East Asian currency unions, using a micro-founded gravity model.",
  "sections": [
    {
      "heading": "Summary and key findings",
      "content": "- Since the 1997 Asian currency crisis, new interest has emerged in the formation of a common currency area in East Asia.\n- Using a micro-founded gravity model, counter-factual experiments suggest that an East Asian currency union \"will double bilateral trade in the region.\"\n- The resulting welfare effects from an East Asian-only union are described as \"moderate.\"\n- If Japan is included in the union, \"welfare effects increase substantially.\"\n- The evidence suggests that \"certain regional currency arrangements in East Asia will stimulate regional trade rigorously and can generate economically significant welfare gains.\""
    },
    {
      "heading": "Methodology",
      "content": "- Model: micro-founded gravity model.\n- Approach: counter-factual experiments assessing various hypothetical currency arrangements for East Asia."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subjects: Currencies, Economic integration, Exchange rate arrangements, Foreign exchange, International trade, Monetary unions, Money, Plurilateral trade, Trade barriers\n- Keywords: arrangement in East Asia, Australia and New Zealand, common currency, common currency area, common currency arrangement in East Asia, Currencies, currency arrangement, currency union, currency union effect, East Asia, exchange rate, Exchange rate arrangements, Gravity Model, Monetary unions, Plurilateral trade, trade aspect of currency union, Trade barriers, trade cost, trade effect, trade-creating effect, trade-creating effect of a currency union, welfare effect, WP\n\nSource: Kazuko Shirono, \"Real Effects of Common Currencies in East Asia\", IMF Working Papers 2007, 166 (2007), July 1, 2007; Pages: 23; DOI: https://doi.org/10.5089/9781451867305.001\n\n---\n\n Content in this bundle\n\n- wp07166\n  - wp07166 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp07166 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/real-effects-of-common-currencies-in-east-asia-21166"
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    "Authors: Kazuko Shirono",
    "Published: July 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451867305.001",
    "Since the 1997 Asian currency crisis, new interest has emerged in the formation of a common currency area in East Asia.",
    "Using a micro-founded gravity model, counter-factual experiments suggest that an East Asian currency union \"will double bilateral trade in the region.\"",
    "The resulting welfare effects from an East Asian-only union are described as \"moderate.\"",
    "If Japan is included in the union, \"welfare effects increase substantially.\"",
    "The evidence suggests that \"certain regional currency arrangements in East Asia will stimulate regional trade rigorously and can generate economically significant welfare gains.\"",
    "Model: micro-founded gravity model.",
    "Approach: counter-factual experiments assessing various hypothetical currency arrangements for East Asia.",
    "Subjects: Currencies, Economic integration, Exchange rate arrangements, Foreign exchange, International trade, Monetary unions, Money, Plurilateral trade, Trade barriers",
    "Keywords: arrangement in East Asia, Australia and New Zealand, common currency, common currency area, common currency arrangement in East Asia, Currencies, currency arrangement, currency union, currency union effect, East Asia, exchange rate, Exchange rate arrangements, Gravity Model, Monetary unions, Plurilateral trade, trade aspect of currency union, Trade barriers, trade cost, trade effect, trade-creating effect, trade-creating effect of a currency union, welfare effect, WP",
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