Is time ripe for a currency union in emerging East Asia? The role of monetary stabilisation

Arbeitspapier

This paper assesses the prospects for monetary integration between Emerging East Asian (EEA) economies. Our empirical analysis is based on a simple analytical framework for currency unions of small open economies, with a focus on the conduct of monetary policy in the presence of different types of shocks. Our empirical analysis looks at a number of supply-side characteristics of EEA countries, distinguishing between aggregate and tradable sector structural features. Moreover, we discuss the evidence on the cross-country variation of disturbances hitting the region. Our study indicates that, at present, EEA economies exhibit a high degree of cross-country supply diversity, while there is no compelling evidence that shocks are highly correlated across the region.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 567

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy ; Central Banks and Their Policies ; International Monetary Arrangements and Institutions ; Macroeconomic Aspects of International Trade and Finance: General
• Subject: Currency union ; East Asia ; emerging economies ; stabilisation ; Währungsunion ; Geldpolitik ; Schock ; Schwellenländer ; Ostasien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sánchez, Marcelo
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/153001
• Last update: 10.03.2025, 11:42 AM CET