European Monetary Unification
A Few Lessons for East Asia
Bibliographic Data
| ID | 10493464 |
|---|---|
| Authors | Paul De Grauwe (0000-0003-0229-1641, London School of Economics and Political Science, corresponding author) |
| Year | 2016 |
| Volume | 63 |
| Issue | 1 |
| Pages | 7-17 |
| Publication date | 2016-01-16 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Scottish Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0036-9292 • E-ISSN: 1467-9485 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/sjpe.12108 |
| OpenAlex | W2395582594 |
| Language | EN |
| Citations received | 1 |
| References cited | 7 |
In this paper, I analyze the experience of European monetary and financial integration to shed some light on the question of the desirability and feasibility of monetary unification in East Asia. The experience of Europe shows that trying to fix the exchange rates when capital is freely moving is unsustainable and leads to frequent speculative crises. This leads to only two options: Either a monetary union or floating exchange rates. Monetary union requires very intrusive political unification. Given the complete absence of political unification in Asia, the only possible conclusion is that Asia will have to live with increasing exchange rate volatility
East Asia · Economics · European union · Exchange rate · Exchange-rate regime · Financial economics · International economics · Keynesian economics · Macroeconomics · Monetary economics · Monetary hegemony · Monetary policy · Political science · Politics · Unification · Volatility (finance · Banking stability, regulation, efficiency · Economic Theory and Policy · Global Financial Crisis and Policies
| Citations per year | 0.2 |
|---|---|
| Citation span | 2021 - 2021 (1) |
| Highly cited | No |