The Suitability of ASEAN for a Regional Currency Arrangement
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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.
Series:
Working Paper No. 1999/162
Subject:
Currencies Economic integration Exchange rates Foreign exchange Monetary unions Money Real exchange rates
English
Publication Date:
December 1, 1999
ISBN/ISSN:
9781451857856/1018-5941
Stock No:
WPIEA1621999
Pages:
24
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