 Is There a Role for an Asian Currency Unit?Chapter 11 in Exchange Rates, Currency Crisis and Monetary Cooperation in Asia, 2009, pp 227-238 from Palgrave Macmillan Abstract: Abstract While most observers concur that the time is not ripe for Asia to consider a common currency, there has been some discussion about the possible creation of an Asian Currency Unit (ACU).2 This chapter examines the specific issue of the ACU which, in a general sense, is a weighted average of regional currencies a la the European Currency Unit (ECU) which was created in March 1979 under the European Monetary System (EMS) and remained in operation until the launch of the euro in January 1999.3 The remainder of the chapter is as follows. Section 11.2 provides a critical overview of and rationale for the ACU proposal. Section 11.3 offers an initial attempt at computing optimal currency compositions of the ACU based on the methodology developed by Hovanov, Kolari and Sokolov (2004). This methodology develops basket weights in the context of a minimized basket or portfolio of assets expressed in terms of national currencies. The final section offers a few concluding remarks. Keywords: National Currency; Base Currency; Asian Development Bank; European Monetary System; Optimum Currency Area (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-23419-2_11 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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