Q: Analyse the case for the East Asian countries forming a currency Union. LAYOUT OF ESSAY BELOW:
1) Discuss the prerequisites of forming an optimum currency union?
2) Do the Asian countries fulfil these prerequisites?
3) What are the costs and benefits of a common currency in East Asia?
4) Does Europe’s experience provide any lessons about how to get a common currency in East Asia?
5) What policies should they adopt to become more integrated?
Sample Solution
