The suitability of East Asia for creating a monetary union

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  • The suitability of East Asia for creating a monetary union <Articles>

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The objective of this paper is to evaluate the suitability of East Asia for potentially creating a monetary union using the criteria suggested by the Optimum Currency Area (OCA) theory and comparisons with the European conditions before the launch of euro. The main finding suggests that from an economic point of view the East Asian countries can form a currency union without so much costs of losing monetary independence and policy autonomy.

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