14 Pages Posted: 19 Apr 2012
Date Written: April 2012
I analyse the sources of the Eurozone crisis. The major conclusion is that the Eurozone is insufficiently embedded in a monetary union, thereby making it fragile and prone to crises. The lesson I draw for East Asia is that despite the fact that this region appears to satisfy the traditional optimal currency area (OCA) criteria to form a monetary union, the complete absence of political unification makes the prospect of a monetary union in that region of the world both unrealistic and undesirable.
Suggested Citation: Suggested Citation
De Grauwe, Paul, Lessons from the Eurocrisis for East Asian Monetary Relations (April 2012). The World Economy, Vol. 35, Issue 4, pp. 405-418, 2012. Available at SSRN: https://ssrn.com/abstract=2042447 or http://dx.doi.org/10.1111/j.1467-9701.2012.01443.x
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