The Feasibility Of East Asian Monetary Union As An Optimum Currency Area

Monetary cooperation in East Asia has become increasingly important and practical, particularly in times of regional economic and financial crisis. Contrary to those papers of studies in the mainstream, this paper evaluates the feasibility of monetary union in East Asia by benchmarking its optimum currency area (OCA) criteria against selected dollarised countries and the European Economic and Monetary Union (EMU). Four criteria are proposed. The US dollar is designated as the anchor currency. To some extent, results do confirm the validity of the criteria and suggest a considerably strong case for monetary integration in parts of the region

El dólar chino vinculado al de Hong Kong durante la crisis global

This paper explores the domestic price level and trade competitiveness of Hong Kong in addition to the compatibility of this dollar-based currency board to the criteria inspired by the optimum currency area (OCA) theory. On price and competitiveness, findings point out that during the turmoil Hong Kong had not performed as well as that in the past and an apparent reason for this is the inflows of hot capital from abroad especially of the US that fuelled rising property prices. On conformity to the OCA criteria, the findings broadly corroborate the fixed exchange regime with the US as the monetary anchor country but at the same time China appears as a prospective contender to US as the monetary anchor. In the longer run, amidst the prolonged economic and monetary weaknesses in the US plus the emergence of renminbi as a global currency, Hong Kong might as well unify its exchange rate with the Chinese money.Este documento explora el nivel de precios internos y la competitividad comercial de Hong Kong, además de la compatibilidad de esta caja de conversión basada en el dólar con los criterios inspirados en la teoría de la zona monetaria óptima (ZMO). En cuanto al precio y la competitividad, los hallazgos señalan que durante la agitación Hong Kong no se había desempeñado tan bien como en el pasado y una razón aparente de esto son las entradas de capital proveniente del extranjero, especialmente de los Estados Unidos, que impulsaron el alza de los precios de las propiedades. En conformidad con los criterios de la ZMO, los hallazgos corroboran ampliamente el régimen de cambio fijo con los Estados Unidos como ancla monetaria, pero, al mismo tiempo, China aparece como un posible candidato a contendor de Estados Unidos como ancla monetaria. A más largo plazo, en medio de la prolongada debilidad económica y monetaria en los Estados unidos, más el surgimiento del renminbi como moneda global, Hong Kong podría también unificar su tipo de cambio con el dinero chino

A single currency for Asia? Evaluation and comparison using hierarchical and model-based cluster analysis

Today, there is increased speculation on the possibility of an Asian currency, as the region begins to show increased promise as a region of nascent economic activity. Any monetary integration scheme in East Asia would likely have to include both China and India though, so this paper attempts to assess the evolution of convergence among the East Asian countries, including China and India, according to the optimum currency area theory criteria, which is operationalized through the use of cluster analysis. In this paper we use both traditional "hierarchical" clustering as well as the more recently developed "model-based" clustering techniques and compare the outcome in each case. As the East Asian crisis of 1997-98 is likely to a¤ect the results, the exercise is done for pre-crisis, crisis, and post-crisis periods. The results reveal some structure among the countries, an increase in the degree of subregional homogeneity, and a robust relationship between Malaysia and Singapore

“Pandemic” in a Stateless Society

This chapter debunks the myth that only the state is capable of handling a pandemic. Instead, without the state, private individuals and entities, when given the full freedom, can better ameliorate the risk and harm of a virus outbreak and at the same time maximize the well-being of the entire society. In particular, this chapter discusses what would have happened in a world without a state and how would the economic laws in the Austrian tradition drive individuals to act in ways that maximize the net benefits not only to themselves but ultimately to every member of the society

Hong Kong, ligado à moeda chinesa, durante a crise global

1 recurso en línea (páginas 87-113).Este artigo explora o nível de preços domésticos e a competitividade comercial de Hong Kong, além da compatibilidade desse quadro de moedas baseado no dólar com os critérios inspirados na teoria da área monetária ótima (OCA). No preço e na competitividade, as descobertas apontam que, durante a turbulência, Hong Kong não teve desempenho tão bom quanto no passado e uma razão aparente para isso é o influxo de capital quente do exterior, especialmente dos EUA, que alimentou o aumento dos preços dos imóveis. Em conformidade com os critérios da OCA, os resultados corroboram amplamente o regime de câmbio fixo com os EUA como o país âncora monetária, mas ao mesmo tempo a China aparece como um candidato em perspectiva aos EUA como âncora monetária. No longo prazo, em meio às fraquezas econômicas e monetárias prolongadas nos EUA, além do surgimento do renminbi como moeda global, Hong Kong também poderia unificar sua taxa de câmbio com o dinheiro chinês.This paper explores the domestic price level and trade competitiveness of Hong Kong in addition to the compatibility of this dollar-based currency board to the criteria inspired by the optimum currency area (OCA) theory. On price and competitiveness, findings point out that during the turmoil Hong Kong had not performed as well as that in the past and an apparent reason for this is the inflows of hot capital from abroad especially of the US that fuelled rising property prices. On conformity to the OCA criteria, the findings broadly corroborate the fixed exchange regime with the US as the monetary anchor country but at the same time China appears as a prospective contender to US as the monetary anchor. In the longer run, amidst the prolonged economic and monetary weaknesses in the US plus the emergence of renminbi as a global currency, Hong Kong might as well unify its exchange rate with the Chinese money.Este documento explora el nivel de precios internos y la competitividad comercial de Hong Kong, además de la compatibilidad de esta caja de conversión basada en el dólar con los criterios inspirados en la teoría de la zona monetaria óptima (ZMO). En cuanto al precio y la competitividad, los hallazgos señalan que durante la agitación Hong Kong no se había desempeñado tan bien como en el pasado y una razón aparente de esto son las entradas de capital proveniente del extranjero, especialmente de los Estados Unidos, que impulsaron el alza de los precios de las propiedades. En conformidad con los criterios de la ZMO, los hallazgos corroboran ampliamente el régimen de cambio fijo con los Estados Unidos como país ancla monetaria, pero, al mismo tiempo, China aparece como un posible candidato a contendor de Estados Unidos como ancla monetaria. A más largo plazo, en medio de la prolongada debilidad económica y monetaria en los Estados unidos, más el surgimiento del renminbi como moneda global, Hong Kong podría también unificar su tipo de cambio con el dinero chino.Bibliografía: páginas 112-113.Código de Clasificación de Journal of Economic Literature (JEL) : F31, F32, F41, F42, O53

Is East Asia as prepared as eurozone for monetary union?

Based on optimum currency areas (OCA) theory and recent developments in the exchange rate regime literature, this paper evaluates the level of preparedness of East Asia for monetary integration by using the EMU as benchmark. Ten macroeconomic dimensions are explored in which the first five facets are measured relative to a reference country, namely the US, Japan, or China whilst the remaining five facets are measured in absolute terms, over the most recent years. In some ways, the exercise does signify the relative economic dominance of the three largest economies to the region. Results suggest that East Asia might be fairly prepared for a monetary integration especially when the reference country is the US. Another interesting observation is that amongst the eurozone founding members, Ireland has shown the lowest degree of conformity in a number of the criteria

El dólar chino vinculado al de Hong Kong durante la crisis global

This paper explores the domestic price level and trade competitiveness of Hong Kong in addition to the compatibility of this dollar-based currency board to the criteria inspired by the optimum currency area (OCA) theory. On price and competitiveness, findings point out that during the turmoil Hong Kong had not performed as well as that in the past and an apparent reason for this is the inflows of hot capital from abroad especially of the US that fuelled rising property prices. On conformity to the OCA criteria, the findings broadly corroborate the fixed exchange regime with the US as the monetary anchor country but at the same time China appears as a prospective contender to US as the monetary anchor. In the longer run, amidst the prolonged economic and monetary weaknesses in the US plus the emergence of renminbi as a global currency, Hong Kong might as well unify its exchange rate with the Chinese moneyEste artigo explora o nível de preços domésticos e a competitividade co-mercial de Hong Kong, além da compatibilidade desse quadro de moedas baseado no dólar com os critérios inspirados na teoria da área monetária ótima (OCA). No preço e na competitividade, as descobertas apontam que, durante a turbulência, Hong Kong não teve desempenho tão bom quanto no passado e uma razão aparente para isso é o influxo de capital quente do exterior, especialmente dos EUA, que alimentou o aumento dos preços dos imóveis. Em conformidade com os critérios da OCA, os resultados corroboram amplamente o regime de câmbio fixo com os EUA como o país âncora monetária, mas ao mesmo tempo a China aparece como um candidato em perspectiva aos EUA como âncora monetária. No longo pra-zo, em meio às fraquezas econômicas e monetárias prolongadas nos EUA, além do surgimento do renminbi como moeda global, Hong Kong também poderia unificar sua taxa de câmbio com o dinheiro chinê

Germany versus the United States: Monetary Dominance in the Eurozone

This study inspects if there is greater convergence with Germany amongst the Eurozone founding members and if their relations with the hegemonic economy have been more symmetrical after “euroization”. The dimensions explored are those inspired by the optimum currency areas (OCA) framework. To some extent, the findings could signify if real convergence has been significantly endogenous. At the same time, to assess the relative dominance of Germany, the features against Germany are compared to those against US. In addition, the paper also appraises some aspects of economic performance to check whether economic conditions across the states have improved and converged after unification. In some convergence aspects, findings suggest remarkable convergence with Germany and across the states but also relative convergence with US. On economic performance, results indicate substantial improvements in inflation and unemployment. Amongst the founding states, Ireland has idiosyncratically shown serious divergences in a number of the convergence and performance measures