In this paper, I examine to what extent Asian exchange rates are coordinated around a synthetic Asian Currency Unit (ACU) defined as a basket of Asian currencies. Using a VAR model, the results provide some evidence of stabilization among Asian exchange rates around the ACU. Although the US...

The paper deals with the questions of why Asian monetary and financial cooperation has not proceeded rapidly even though the countries have discussed this issue for so long and how to overcome this problem. The authors identify the lack of a common vision and a roadmap for monetary integration...

This paper examines different properties of the regional currency unit (RCU) in Asia and estimates the value of the RCU as a weighted average of East Asian currencies according to the method used to calculate the ECU under the EMS. The basket feature of the RCU yields benefits and costs. First,...

We argue that a number of recent studies have overstated the economic case for the creation of a common Asian currency by focusing on only a few of the relevant criteria. We also conclude that endogenous forces are unlikely to be sufficiently strong that adopting a common currency would quickly...