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Asian Common Currency as a Driving Force of Economic Integration in East Asia: A Prospect

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Abstract:

This article proposes an open and multi-tiered economic and financial system with introduction of an Asian common currency as a form for the Post Bretton-Woods arrangement. After reviewing the role of the incumbent international economic system, the reasons that an Asian common currency could contribute to consolidate the new international system is discussed bearing in mind the new environment of the relative decline of economic power of the United States and relative rise of economic power of China. Then a “roadmap” for the introduction of an Asian common currency is provided and how to proceed steadily on the long road towards the introduction of the new currency is argued. In particular, it is emphasized, as the world looks for a new direction, that strong political collaboration in the region is required precisely now with a view to making this a reality.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/13439000903381360

Publication date: November 1, 2009

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