feasibility of the single currency of Asia
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The 1997 outburst of Asian financial crisis, exposed that various Asia countries lack the system to deal with the international financial crisis and suit for the economic globalization. So, Asian countries realize progressively that they should strengthen the financial cooperation. By the Theory of Optimum Currency Areas and cost and return analysis theory of the optimum currency areas and the lessons from the integrated European currency, we can study the feasibility of the single currency of Asia and implement procedures. It is important both in theory and practice.
The Thesis is divided into three parts. The first part Recommended the Theory of Optimum Currency Areas and cost and return analysis theory of the optimum currency areas. The second part introduced the background of integrated economic currency of Europe and implementation of Euro. And pointed out that although euro area is still not a very good optimum currency area, European Union members gave up their floating rate and unify the currency pay much smaller than estimated in theory. The route how the European currencies are integrated, is to take economic integration through the free trade area at first, and then integrate the currency progressively. Economic differences of European countries, can not hinder process of currency unification...