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| Sin, Lew Yuen; Asam Tuan Lorik, Ku. |
| Intra-trade among ASEAN countries have remained around 20% over the period 1993 until 2001 (ASEAN Secretariat). With this significant amount of trade being conducted between members of ASEAN countries, businesses were faced with exchange rate exposure due to the volatility of the exchange rate within the regions as was experienced during the Asian Financial Crisis of 1997-98. Members of the European Union overcome this exchange rate exposure by agreeing to form a monetary union and adopting Euro as their common currency in 1999. This paper examines the feasibility of a Optimum Currency Area (OCA) for ASEAN 9 to adopt a common currency, especially after the 1997-98 Asian Financial Crisis. Using macro-economic data for 9 ASEAN countries over the 15 years... |
| Tipo: Journal Article |
Palavras-chave: Monetary union; Optimum currency area; SVAR; Financial Economics; E52; F31; F36. |
| Ano: 2006 |
URL: http://purl.umn.edu/50151 |
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| Hefeker, Carsten. |
| The paper explores the interaction between the proposed monetary union for ECOWAS and structural reforms of fiscal policy. The effects depend to a large extent on the degree of similarity of member countries. In a monetary union of similar countries, member states run a more distortive fiscal policy, while their structural reform efforts will fall. This is also the case for countries that unilaterally peg to an anchor currency or introduce a foreign currency. In an monetary union with dissimilar countries the reverse can happen for those member states that are confronted with high distortion countries. This result implies that current WAEMU members will run a less distortive fiscal policy after the inclusion of other members of ECOWAS. |
| Tipo: Working or Discussion Paper |
Palavras-chave: West Africa; Monetary union; Fiscal policy; Structural reforms; Financial Economics; F33; E61; E63. |
| Ano: 2003 |
URL: http://purl.umn.edu/26257 |
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