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Lessons from the Eurocrisis for East Asian Monetary Relations
Author(s) -
De Grauwe Paul
Publication year - 2012
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.1467-9701.2012.01443.x
Subject(s) - unification , economics , optimum currency area , currency , east asia , international economics , european monetary union , european debt crisis , monetary hegemony , politics , keynesian economics , currency union , monetary economics , monetary policy , european union , european integration , political science , china , computer science , law , programming language
I analyse the sources of the Eurozone crisis. The major conclusion is that the Eurozone is insufficiently embedded in a monetary union, thereby making it fragile and prone to crises. The lesson I draw for East Asia is that despite the fact that this region appears to satisfy the traditional optimal currency area (OCA) criteria to form a monetary union, the complete absence of political unification makes the prospect of a monetary union in that region of the world both unrealistic and undesirable.