Lessons of the European Crisis for Regional Monetary and Financial Integration in East Asia

25 Pages Posted: 23 Feb 2012

See all articles by Ulrich Volz

Ulrich Volz

University of London - School of Oriental and African Studies (SOAS) - Economics; Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Date Written: February 23, 2012

Abstract

The debt crisis in several member states of the euro area has raised doubts on the viability of European Economic and Monetary Union (EMU) and the future of the euro. While the launch of the euro in 1999 stirred a lot of interest in regional monetary integration and even monetary unification in various parts of the world, including East Asia, the current crisis has had the opposite effect, even raising expectations of a break-up of the euro area. Indeed, the crisis has highlighted the problems and tensions that will inevitably arise within a monetary union when imbalances build up and become unsustainable. This note discusses the causes of the current European crisis and the challenges that EMU countries face in solving it. Based on this analysis, it derives five lessons for regional financial and monetary cooperation and integration in East Asia.

Keywords: European crisis, Euro area, European monetary union, financial integration, East Asia

JEL Classification: E42, F33, F36, G01

Suggested Citation

Volz, Ulrich, Lessons of the European Crisis for Regional Monetary and Financial Integration in East Asia (February 23, 2012). ADBI Working Paper 347. Available at SSRN: https://ssrn.com/abstract=2009728 or http://dx.doi.org/10.2139/ssrn.2009728

Ulrich Volz (Contact Author)

University of London - School of Oriental and African Studies (SOAS) - Economics

London, WC1E 7HU
United Kingdom

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 4
Bonn, 53113
Germany

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