This paper analyzes the possibility of creating a single currency in East Asia. The level of interdependence in East Asia has almost matched the level in Europe, at least that in Europe in 1980-90 when Europe introduced a common currency. Therefore, this paper assesses if East Asia, especially ASEAN + 3 (China, Japan and South Korea) would be able to create a single currency. This is the central question to answer in this paper. In order to see if it is possible to introduce a single currency in East Asia, I use the optimum currency area theory, which defines the optimum geographical area for a single currency. This theory indentifies several conditions to be fulfilled, in order to form a currency area. Therefore, I first look at the Euro as an example of optimum currency area and then move on to an empirical analysis on a single currency in East Asia, by evaluating if East Asia fulfills the theoretical pre-conditions. Finally, the steps towards creating a single currency in East Asia will be discussed.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-20288 |
| Date | January 2012 |
| Creators | Sanno, Nobuyuki |
| Publisher | Linnéuniversitetet, Ekonomihögskolan, ELNU |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
Page generated in 0.0046 seconds