The Suitability of ASEAN for a Regional Currency Arrangement

Paolo Mauro and Tamim Bayoumi

No 1999/162, IMF Working Papers from International Monetary Fund

Abstract: This paper examines the costs, benefits, preconditions, and implications of an Association of Southeast Asian Nations (ASEAN) regional currency arrangement that is assumed to culminate in a regional currency. On economic criteria, ASEAN appears less suited for a regional currency arrangement than Europe before the Maastricht Treaty, although the difference is not large. The transition to European Monetary Union (EMU) indicates that the path toward a common currency is fraught with difficulty. A firm political commitment would seem to be vital to ensuring that an attempt to form a regional currency arrangement is not viewed as simply another fixed exchange rate regime, open to speculative crises.

Keywords: WP; exchange rate; currency; single currency; ASEAN country; country; currency union; ASEAN; EMU; exchange rates; common currency; ASEAN member; EMU country; ASEAN countries' exposure; exposure to fluctuation; ASEAN context; ASEAN process; currency arrangement; EMU process; EU institution; ASEAN's trade; Monetary unions; Currencies; Real exchange rates; Europe; Western Europe; East Asia; Asia and Pacific; Eastern Europe (search for similar items in EconPapers)
Pages: 24
Date: 1999-12-01
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Citations: View citations in EconPapers (35)

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Journal Article: The Suitability of ASEAN for a Regional Currency Arrangement (2001)
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