A Proposal for: 'A Common Financial Market for the Asia-Pacific'

Abstract:     
Asia-Pacific stock markets with strong growth deriving from the information and communications technology (ICT) revolution are seeking to become a more integrated stock market. But some currencies and stocks in these markets are excessively volatile. Billions of dollars have been invested in hedging against currency and stock market volatility. An integrated stock market underpinned by a single currency would reduce this problem. We investigate the interaction between price movements, capital flows, and financial integration; and explore the necessity for and practicability of a currency union. The project will assist the investment community and governments in both understanding and managing any transition towards stock market integration.

Keywords: Asia-Pacific stock markets, Integrated stock market, Stock market integration

JEL Classifications: G10, F30, F36

Working Paper Series