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Reserve Pooling And Its Implication On Optimum Currency Area In Asean

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  • TAJUL ARIFFIN MASRON

    (School of Management, Universiti Sains Malaysia, 11800 USM Penang, Malaysia)

  • ZULKORNAIN YUSOP

    (Faculty of Economics and Management, Universiti Putra Malaysia, 43400, Serdang, Selangor, Malaysia)

Abstract

Regional economic integration in ASEAN, ASEAN Free Trade Area (AFTA), is expected to produce positive outcomes on economic growth in ASEAN especially through its impact on trade and investment. This idea can be strengthened if regional monetary integration is followed. Therefore, focusing on reserve pooling, which is one of the proxy for Optimum Currency Area (OCA) variables, this study intends to examine the feasibility of a common currency in ASEAN. In addition, this study also investigates this idea in the presence of external shock.

Suggested Citation

  • Tajul Ariffin Masron & Zulkornain Yusop, 2009. "Reserve Pooling And Its Implication On Optimum Currency Area In Asean," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 54(02), pages 299-312.
    • Handle: RePEc:wsi:serxxx:v:54:y:2009:i:02:n:s021759080900329x
    DOI: 10.1142/S021759080900329X
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    References listed on IDEAS

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