| Publication |
2010.
|
| Summary/Abstract |
In recent years, there has been considerable scholarly and policy community attention accorded to comparisons between the EU's monetary integration and attempts to create monetary integration in East Asia. This article examines these attempts in comparative perspective, focusing in particular on the challenges of monetary integration in Asia. After explaining recent development of financial and monetary cooperation initiatives in East Asia, such as Post-Chiang Mai Initiative and the attempt to introduce a Regional Currency Unit (RCU), this article illustrates why it is preferable for East Asia, in its attempt to pursue monetary integration, to follow a path similar to the European experience, rather than to follow alternative paths such as a parallel currency approach or a harmonized inflation targeting. That RCU could in the future be issued by the so-called 'Asian Exchange Rate Stabilization Fund' (AERSF). The AERSF would assure the stability of regional currencies taken as a whole vis-à-vis third currencies, and between themselves as well, and as such, pave the way for full monetary integration in Asia. Comparisons with Europe are explored and implications for European and Asian regionalism are examined.
|