The world financial markets are becoming an increasingly global marketplace, and emerging economies are being pulled into this rapid pace of financial innovation and globalization at varying speeds. The choice whether to be integrated or not does not solely rest in these countries alone. The big strides in telecommunications and information technology have made it increasingly possible for any nation to insulate itself from the rest of the world.
Europe has pioneered a major change in currencies - they have eliminated the use of national currencies and replaced it with a single currency for almost the whole of Europe. It is a fact that countries aim to have international monetary cooperation and to keep their exchange rates stable due to the globalization, internationalization, and financial market integration phenomena but no other group of countries have made an attempt as bold as Europe's. So why did Europe decide to create a European Monetary Union (EMU) and make its main project a supranational currency? Is there a need for Asia to do the same?
In this paper, we will examine the historical, economic, and political agenda behind the creation of the Euro and we will investigate on its applicability to Asia.
To derive at a conclusion and recommendation, the group will provide a brief economic history of a single currency. Next we will present our findings in the related literature specifically the case of the Euro and the over- all condition of Asia. Once we have laid down the facts and the situation, the group will show the arguments on the possible advantages and disadvantages a common currency can bring. Finally, we will arrive at our proposed outcome and recommendation for a possible common currency in Asia.
II. History of The Single Currency.
History will tell us that the Roman...