IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/12032.html
   My bibliography  Save this paper

Are the "ASEAN Plus Three" Countries Coming Closer to an OCA?

Author

Listed:
  • KAWASAKI Kentaro

Abstract

After the global financial crisis, it has become more recognized that the policy dialogues among both emerging and advanced economies on the exchange rate is necessary to prevent competitive devaluation. In this context, East Asian countries should also choose an adequate exchange rate system. However, there still exists a variety of exchange rate regimes in this area, which might suggest a possibility of coordination failure. To avoid this, the establishment of stable exchange rate linkages and the enhancement of monetary policy credibility in East Asia are needed. These discussions on common regional exchange rate policy are often related to the "Optimum Currency Area (OCA) theory" because stabilized exchange rates in the global economies are only assured by a "one size fits all" monetary policy in the end. Hence, the main purpose of this paper is to investigate whether East Asian countries—ASEAN5, China, Korea, and Japan—have developed into matching an OCA in recent years or not. While developing the earlier generalized purchasing power parity (G-PPP) model into an up-to-date non-linear econometric model and considering the adoption of the Asian monetary unit (AMU) into this area, this paper could have positive empirical results which suggest for forming a common currency in East Asia.

Suggested Citation

  • KAWASAKI Kentaro, 2012. "Are the "ASEAN Plus Three" Countries Coming Closer to an OCA?," Discussion papers 12032, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:12032
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/12e032.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kentaro Kawasaki & Zhi-Qian Wang, 2015. "Is Economic Development Promoting Monetary Integration in East Asia?," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 3(4), pages 1-31, October.
    2. repec:far:spaeco:y:2014:i:1:p:138-152 is not listed on IDEAS
    3. KAWASAKI Kentaro, 2013. "How Does the Regional Monetary Unit Work as a Surveillance Tool in East Asia?," Discussion papers 13026, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:12032. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (TANIMOTO, Toko). General contact details of provider: http://edirc.repec.org/data/rietijp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.