Abstract
Barry Eichengreen concluded in his volume of 1994 that a floating exchange rate system was more appropriate for Asia than a monetary union because insufficient preparation had been undertaken for economic integration (Eichengreen 1994). More than 10 years have passed since then, and in light of the enlargement of intra-Asian trade and the monetary crisis, the idea of monetary union or single currency in Asia appears a realistic choice for Asia. While the recent euro crisis has posed difficult questions as to the management of the regional monetary union, a crisis prevention measure via the establishment of a regional monetary union has not lost its impetus. Ogawa’s plan for an AMU is one where common currency indicators are introduced into Asia, and this will finally lead to regional integration. Although this idea is interesting and of value in the current unstable international economic situation, I wish to further explain some points that were not fully discussed.
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Notes
- 1.
Member countries’ agreement on the budgetary rule is based on the situation as at the end of January 2012.
- 2.
The Bretton Woods period (from 1945 to 1971) is sometimes called the era of “embedded liberalism” as the Bretton Woods institutions offered various devices—adjustable peg, short-term lending, an exemption clause from the liberalization obligation during the transitional period in the IMF, and escape clauses in the GATT—which made it possible for member countries to pursue domestic intervention while accomplishing international cooperation based on the liberalization of trade and exchange. John Ruggie developed this concept of “embedded liberalism” regarding the Bretton Woods period, inspired by Karl Polanyi who viewed the market economy under the classical gold standard as “disembedded” from society.
- 3.
The analytical framework regarding economic integration in European as a way to achieve national goals of economic reconstruction and the recovery of political legitimacy was proposed by Milward (1992).
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Kudo, M. (2013). Comment Paper to Chapter “Regional Monetary Cooperation in Asia”. In: Kaji, S., Ogawa, E. (eds) Who Will Provide the Next Financial Model?. Springer, Tokyo. https://doi.org/10.1007/978-4-431-54282-7_20
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