EU’s unknown Asia - Does Asia need a single currency to lead the world?
As the euro has contributed to the culture and economy of Europe, I would like to examine if Asia, particularly East Asia, could learn a lesson from the EU to create a single currency. In fact, small intra-regional exchange rate misalignment can interrupt trade and investment flows and potential trade frictions can occur among regional economies. It suggests that the need for intra-regional exchange rate stabilization. Besides, it was found that of the US$2.1 trillion total trade in 2010 only 25 percent of it was represented by trade among ASEAN members. To ensure sustained development of the region, ASEAN needs to considerably boost internal trade and ultimately a single currency in East Asia can solve the difficulties and improve the situation. The paper will also investigate the influence of the creation of single currency on East Asian citizenship. On the other hand, would this new currency facilitates economy and prevent financial crisis and to what extent it contribute to East Asia integration, trade and investment.
After the Euro crisis, a lot of discussion concern about the status of Euro is getting worse. The paper will also analyze if Asia need Euro and how Asia are affected by this monetary device and Euro crisis. In contrast, if East Asia has a single currency, the impacts on the Asia- EU relationship and how it affects EU and Asia interacted will be discussed.
Some literature reveals the purpose of the creation of Euro is to defeat US dollars. Even the Euro is not stable but it will become stronger. This paper will also suggest that East Asia is going to be stronger with its single currency, US dollars will be defeated and it will be as strong as Euro in the future. However, with the power of ASEAN plus three and India will make Asia be the most powerful continent and neither United State of America or Europe will... [continues]
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