India’s Monetary Integration with East Asia: A Feasibility Study

Author Name by Sweta Chaman Saxena
Author Name: 
by Sweta Chaman Saxena

This paper examines the relevance of India’s monetary integration with East and Southeast Asia in particular the existence of the economic criteria for a common currency. The analysis in this paper shows that significant complementarities in trade exist among these countries, most of them experience similar shocks and labour mobility is already present. These results point to the fact that the cost of adopting a single currency may be minimal, while huge benefits could accrue from enhanced trade. The paper also recognizes the importance of yen for the success of the monetary union in Asia.