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 |
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