There has been recently increasing interest in the establishment of a common currency area in East Asia in the aftermath of the East Asian financial crisis. In this paper, we examine the desirability and feasibility of forming a currency area in the region by checking the symmetry of shocks as an important criterion of the […]

We investigate the determinants of business cycle synchronization in East Asia by testing the robustness of the potential candidates, using the technique of Extreme Bound Analysis in an OLS regression framework with Newey-West correction for heteroskedasticity and autocorrelation. We find that trade openness and intra-industry trade are major channels of business cycle synchronization. Although the […]

This paper attempts to examine the degree of homogeneity and the plausibility of a currency union in East Asia from the perspective of multiple OCA criteria, using the technique of fuzzy clustering analysis. The question of homogeneity is obviously of importance to the smooth formation and operation of the prospective currency union. We find that […]