The Suitability of ASEAN for a Regional Currency Arrangement

24 Pages Posted: 10 Feb 2006

See all articles by Tamim Bayoumi

Tamim Bayoumi

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Paolo Mauro

International Monetary Fund (IMF)

Date Written: December 1999

Abstract

This paper examines the costs, benefits, preconditions, and implications of an Association of Southeast Asian Nations (ASEAN) regional currency arrangement that is assumed to culminate in a regional currency. On economic criteria, ASEAN appears less suited for a regional currency arrangement than Europe before the Maastricht Treaty, although the difference is not large. The transition to European Monetary Union (EMU) indicates that the path toward a common currency is fraught with difficulty. A firm political commitment would seem to be vital to ensuring that an attempt to form a regional currency arrangement is not viewed as simply another fixed exchange rate regime, open to speculative crises.

Keywords: ASEAN, EMU, exchange rates

JEL Classification: F33, F36, F41, F42

Suggested Citation

Bayoumi, Tamim and Mauro, Paolo, The Suitability of ASEAN for a Regional Currency Arrangement (December 1999). IMF Working Paper, Vol. , pp. 1-24, 1999. Available at SSRN: https://ssrn.com/abstract=880817

Tamim Bayoumi (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6333 (Phone)
202-623-4795 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Paolo Mauro

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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