Lessons of the European Crisis for Regional Monetary and Financial Integration in East Asia
25 Pages Posted: 23 Feb 2012
Date Written: February 23, 2012
Abstract
The debt crisis in several member states of the euro area has raised doubts on the viability of European Economic and Monetary Union (EMU) and the future of the euro. While the launch of the euro in 1999 stirred a lot of interest in regional monetary integration and even monetary unification in various parts of the world, including East Asia, the current crisis has had the opposite effect, even raising expectations of a break-up of the euro area. Indeed, the crisis has highlighted the problems and tensions that will inevitably arise within a monetary union when imbalances build up and become unsustainable. This note discusses the causes of the current European crisis and the challenges that EMU countries face in solving it. Based on this analysis, it derives five lessons for regional financial and monetary cooperation and integration in East Asia.
Keywords: European crisis, Euro area, European monetary union, financial integration, East Asia
JEL Classification: E42, F33, F36, G01
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
How Sovereign is Sovereign Credit Risk?
By Francis A. Longstaff, Jun Pan, ...
-
A Pyrrhic Victory? - Bank Bailouts and Sovereign Credit Risk
By Viral V. Acharya, Itamar Drechsler, ...
-
A Pyrrhic Victory? Bank Bailouts and Sovereign Credit Risk
By Viral V. Acharya, Itamar Drechsler, ...
-
A Pyrrhic Victory? Bank Bailouts and Sovereign Credit Risk
By Viral V. Acharya, Itamar Drechsler, ...
-
A Pyrrhic Victory? Bank Bailouts and Sovereign Credit Risk
By Viral V. Acharya, Itamar Drechsler, ...
-
Globalization and Risk Sharing
By Fernando Broner and Jaume Ventura
-
Globalization and Risk Sharing
By Fernando Broner and Jaume Ventura
-
Globalization and Risk Sharing
By Fernando Broner and Jaume Ventura
-
Sovereign Risk and Secondary Markets
By Fernando Broner, Alberto Martin, ...
-
Sovereign Risk and Secondary Markets
By Fernando Broner, Alberto Martin, ...