Title

Is a monetary union feasible for East Asia?

Document Type

Journal Article

Publisher

Taylor and Francis

Faculty

Faculty of Business and Law

School

School of Accounting, Finance and Business Economics

RAS ID

8160

Comments

Zhang, Z., Sato, K., & McAleer, M. (2004). Is a monetary union feasible for East Asia?. Applied Economics, 36(10), 1031-1043.

Abstract

The empirical suitability of the East Asian economies for potential monetary integration is assessed. The structural vector autoregression (VAR) method is employed to identify the underlying shocks using a three-variable VAR model across the East Asian economies. The estimates of the EEC are used as a benchmark to compare the size of the underlying shocks and the speed of adjustment to shocks in both regions to determine the feasibility of forming an optimum currency area (OCA) in East Asia. The empirical results do not display strong support for forming an OCA in the East Asian region. The results do imply, however, that some small subregions are potential candidates for OCAs, since their disturbances are correlated and small and these economies adjust rapidly to shocks.

DOI

10.1080/0003684042000246740

 
COinS
 

Link to publisher version (DOI)

10.1080/0003684042000246740