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Do the ASEAN countries and Taiwan form a common currency area?

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  • Binner, Jane
  • Chen, Shu-Heng
  • Lai, Ke-Hung
  • Mullineux, Andrew
  • Swofford, James L.

Abstract

Common currency areas and Asian common currency areas in particular are highly topical and somewhat controversial areas for research. We explore the hypothesis that the members of the Association of Southeast Asian Nations meet necessary conditions for forming a common currency area and whether Taiwan appears a natural member of such an area. We test data on the ASEAN countries and Taiwan for consistency with a common currency area. We produce the first evidence that these five ASEAN countries and the ASEAN countries plus Taiwan meet the microeconomic criteria to form a common currency area.

Suggested Citation

  • Binner, Jane & Chen, Shu-Heng & Lai, Ke-Hung & Mullineux, Andrew & Swofford, James L., 2011. "Do the ASEAN countries and Taiwan form a common currency area?," Journal of International Money and Finance, Elsevier, vol. 30(7), pages 1429-1435.
    • Handle: RePEc:eee:jimfin:v:30:y:2011:i:7:p:1429-1435
    DOI: 10.1016/j.jimonfin.2011.06.012
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    Cited by:

    1. Andy Mullineux, 2015. "Implications Of The Eurozone Crisis For Monetary Unions In Sub-Saharan Africa," The African Finance Journal, Africagrowth Institute, vol. 17(1), pages 21-40.
    2. Jamshaid ur Rehman & Tasneem Zafar & Shabbir Ahmad & Aftab Anwar, 2022. "In Search of Common Currency Anchor for ASEAN+3+3 Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 237-264, September.

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    More about this item

    Keywords

    Common currency area; Weak separability; Microeconomic foundations;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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