Possibility of creating a single currency in East Asia
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
This paper analyzes the possibility of creating a single currency in East Asia. The level of interdependence in East Asia has almost matched the level in Europe, at least that in Europe in 1980-90 when Europe introduced a common currency. Therefore, this paper assesses if East Asia, especially ASEAN + 3 (China, Japan and South Korea) would be able to create a single currency. This is the central question to answer in this paper. In order to see if it is possible to introduce a single currency in East Asia, I use the optimum currency area theory, which defines the optimum geographical area for a single currency. This theory indentifies several conditions to be fulfilled, in order to form a currency area. Therefore, I first look at the Euro as an example of optimum currency area and then move on to an empirical analysis on a single currency in East Asia, by evaluating if East Asia fulfills the theoretical pre-conditions. Finally, the steps towards creating a single currency in East Asia will be discussed.
Place, publisher, year, edition, pages
2012. , 53 p.
Economics and Business
IdentifiersURN: urn:nbn:se:lnu:diva-20288OAI: oai:DiVA.org:lnu-20288DiVA: diva2:536170
Subject / course
UppsokSocial and Behavioural Science, Law
Anxo, Dominique, Professor