Can South Asia Adopt a Common Currency?

Sweta Saxena

International Finance from University Library of Munich, Germany

Abstract: The paper examines if the seven South Asian countries satisfy the criteria to form an optimal currency area. The empirical part of the paper reveals some positive attributes (such as the existence of positive shocks for major economies like India, Pakistan and Sri Lanka). The paper provides geo-political reasoning for more economic cooperation among the countries, suggesting areas where cooperation could be mutually beneficial to the economies. This paper argues that the benefits of a common currency would accrue from the peace that economic integration would bring between India and Pakistan. The paper also compares this region with Western Europe and Southeast Asia.

Keywords: South Asia; SAARC; Monetary union; economic integration; optimal currency areas (search for similar items in EconPapers)
JEL-codes: E32 F33 F36 F42 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2005-08-07
Note: Type of Document - pdf; pages: 44
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpif:0508001

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