What is it about?
This paper published as an Economic working paper series of the Asian Development Bank in 2002 asks the question: If large countries - such as India and China - with hugely economically diverse subregions within them could have a common currency, can the ASEAN with similar diversity can have a common currency. The answer was 'yes' but subject to the ASEAN countries giving up national monetary policy independence and allowing free labor mobility across national borders.
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Why is it important?
The early 200s was a time when the ASEAN was toying with the idea of exchange rate coordination among its member countries, so that ASEAN's trade and economic integration could be speeded up. Against that backdrop, the paper examined the pros and cons of one form of cross-border exchange rate coordination - adopting a common currency rather than maintaining national currencies and then mess around with exchange rate coordination.
Perspectives
The paper did some out of the box thinking on an issue on which ASEAN countries were looking at many forms of exchange rate coordination, in those years during which many ASEAN countries were just about recovering from the 1997-98 Asian financial crisis. The paper's novelty lies in such an out of the box idea that perhaps were far ahead of the times.
Dr srinivasa madhur
Ministry of Economy and Finance
Read the Original
This page is a summary of: Costs and benefits of a common currency for the ASEAN, Edward Elgar Publishing,
DOI: 10.4337/9781845423384.00018.
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