The Parallel-Currency Approach to Asian Monetary Integration

摘要

Since the crisis of 1997-1998, there has been a proliferation of proposals for fostering Asian monetary integration. Asian countries, it is suggested, should collectively peg their currencies to the dollar, the yen, or a dollar-yen-euro basket, or establish a multilateral currency grid like the European Monetary System (EMS). The resulting exchange rate stability would promote intraregional trade, simplify investment planning, and encourage cross-border participation in local bond markets. Experience with establishing and maintaining a system of stable exchange rates would help ready the region for the introduction of a single currency. Asia, in this view, should emulate Europe's approach to regional monetary integration.