Monetary Integration Ahead of Trade Integration in East Asia?
30 Pages Posted: 23 Jun 2003
Date Written: March 2003
Abstract
Regionalism is taking two forms. It is occurring firstly through free trade arrangements and secondly through monetary arrangements. In this paper, we highlight the issues related to the reversal of sequence between trade integration (free trade agreement) and monetary integration (a monetary union). While the Euro area pursued trade integration first, from a theoretical point of view, there is no clear reason for introducing trade integration ahead of monetary integration. On the contrary we point out many good reasons for forming a monetary union before a free trade agreement.
Keywords: union, monetary integration, free trade agreement
JEL Classification: E32, F36, F41
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
China, Hong Kong, and Taiwan: A Quantitative Assessment of Real and Financial Integration
By Yin-wong Cheung, Menzie David Chinn, ...
-
China, Hong Kong, and Taiwan: A Quantitative Assessment of Real and Financial Integration
By Yin-wong Cheung, Menzie David Chinn, ...
-
By Robert S. Chirinko, Hans Van Ees, ...
-
The Absorption of Illicit Financial Flows from Developing Countries: 2002-2006
By Dev Kar, Devon Cartwright-smith, ...
-
By Chander Kant
-
Capital Flight: China's Experience
By Yin-wong Cheung and Xingwang Qian
-
Capital Flight: China’s Experience
By Yin-wong Cheung and Xingwang Qian
-
Fiscal Equalisation: Principles and an Application to the European Union
By Bernd Hayo and Matthias Wrede
-
By Dieter Bös