Is the European Exchange Rate Mechanism a Model for East Asia?

33 Pages Posted: 31 Oct 2010

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; Centre for International Governance Innovation (CIGI); C.D. Howe Institute; Asia Pacific Foundation of Canada; BKP Development Research & Consulting GmbH

Date Written: October 1, 2002


The idea of an East Asian Economic Zone, while much talked about since the 1980s, showed few signs of becoming a reality as a result of economic diplomacy alone. In 1997, however, international capital markets treated East Asian economies as a distinct region as “contagion” swept from Thailand through Southeast and Northeast Asia. The sequential devaluations against the US dollar resulted in large changes in cross-rates against other East Asian currencies, straining regional trade and economic relationships. A regional exchange rate mechanism modeled on Europe’s might have permitted a less turbulent currency realignment in 1997 and arguably could work to facilitate adjustments portended by current global external imbalances. However, for geopolitical and economic reasons, it is hard to see the ERM model being readily transplanted; East Asia will likely have to evolve its own regional monetary cooperation framework.

Keywords: East Asia, ERM, exchange rate mechanism, regional economic coordination

JEL Classification: F33, F42

Suggested Citation

Ciuriak, Dan, Is the European Exchange Rate Mechanism a Model for East Asia? (October 1, 2002). Available at SSRN: or

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8

Asia Pacific Foundation of Canada ( email )



BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics