Since the 1997 Asian currency crisis, new interest has emerged in the formation of a common currency area in East Asia. This paper provides estimates of trade and welfare effects of East Asian currency unions, using a micro-founded gravity model. Counter-factual experiments to assess the effects...

This paper examines the role of Japan against that of China in the exchange rate regime in East Asia in light of growing interest in forming a currency union in the region. The analysis suggests that currency unions with China tend to generate higher average welfare gains for East Asian...

During the Asian crisis, some crisis-hit economies raised domestic interest rates persistently in an effort to appreciate their currencies. Although Asian currencies eventually stabilized, it is still debated whether high interest rates contributed to the restoration of stability. Correlation...