Work detail

Prospects of Monetary Integration in the ASEAN

Author: Bc. Šimon Juhás
Year: 2022 - summer
Leaders: doc. Mgr. Tomáš Holub Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 53
Awards and prizes:
Link: https://dspace.cuni.cz/handle/20.500.11956/173683
Abstract: The thesis examines the suitability of the ASEAN region for a currency union. The evaluation
is conducted primarily through a model developed by Bayoumi and Eichengreen (1996b), used
by them originally to assess the prospects of European currency integration. The equation of
this model is first estimated anew using a sample focused on Asia containing data from the last
decade. The resulting equation, despite problems linked with certain coefficients, is used to
construct the OCA indexes, which in turn serve as the basis for assessing the preparedness of
the ASEAN for a single currency. The discussion of the results concludes overall rather against
the idea of a monetary union in Southeast Asia. Malaysia and Singapore are identified as having
notably better chances of forming a successful currency union according to the value of the
corresponding index. Besides this analysis, commentaries on several factors crucially linked
with the issue of monetary integration are provided. This includes an overview of Southeast
Asia’s developments concerning the factors, which are used for evaluating adherence to the
Maastricht criteria in Europe. Throughout the thesis, numerous indicators are found, which
suggest that a monetary union in the ASEAN might currently not be considered a desirable
option.
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