A Unified Currency in ASEAN: Suitability and Constraints
8 Pages Posted: 25 May 2009
Date Written: May 23, 2009
This paper assesses the suitability and constraints of having a unified currency in Association of Southeast Asian Nations (ASEAN) according to the optimum currency area theory and by analyzing the result of symmetry shocks of macroeconomic variables. The paper concludes that although there are many constraints on the adoption of a common currency by ASEAN, but in near future with the formation ASEAN Economic Community by 2015 along with greater political integration would help to act as a foundation ground for having a common currency.
Keywords: ASEAN, common currency, symmetry shock, monetary integration
JEL Classification: E58, F33, F36, F41, F42
Suggested Citation: Suggested Citation