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1 Suggestions for an East Asian Monetary Union: Focusing on the Effects of Monetary Integration on Bilateral Trade  / 2006 /  East Asian Economic Review  / vol.10, no.1, pp.131 / 

10.11644/KIEP.JEAI.2006.10.1.154

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East Asian Economic Review Vol. 8, No. 2, 2004. pp. 145-192.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.2004.8.2.127

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Alternative paths of East Asian Monetary Integration in Light of European Economic and Monetary Union

Author

Sung-Hoon Park

Korea University;Korea Institute for International Economic Policy (KIEP)

shpark@korea.ac.kr

Heungchong Kim

Korea Institute for International Economic Policy (KIEP)

hckim@kiep.go.kr
Creative Commons Attribution License

EAER is an open access journal distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license.

Abstract

This paper investigates possible paths of East Asian Monetary Integration. After a brief analysis of current discussions on East Asian economic and monetary integration, the paper presents possible implications of Europe's EMU project for East Asia and the political economy of East Asia as constraints on East Asia's way towards monetary integration. The paper argues that whichever paths East Asia selects, countries in the region have to devise measures that can lead to stability convergence, which was the main success factor for the introduction of single currency in Europe. The paper also presents seven possible paths for East Asian monetary integration, and argues that only four of them are feasible strategic choices. The paper concludes that although all these four paths are potential candidates, they have to be complemented by additional policy instruments. The paper suggests these additional measures be targeted at intensifying stability convergence in East Asia, which was the most important prerequisite for a successful introduction of Euro, the single currency for twelve member countries of the European Union. After a brief efficiency and feasibility test the paper selected the option of “developing the Chiang Mai Initiative to a Multilateral Financing Scheme” as the best short- and medium-term strategy towards monetary integration.

JEL classification: F15, F36, G15, G18

Keywords

Economic Integration, Monetary Integration, Asian Monetary Union, Economic and Monetary Union, Asian Monetary System

Language

Korean

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