Prospects of Monetary Integration in Asia: Adopting the Yuan and Other Options
General Material Designation
[Thesis]
First Statement of Responsibility
Wenwen Zhang
Subsequent Statement of Responsibility
Karras, George
.PUBLICATION, DISTRIBUTION, ETC
Name of Publisher, Distributor, etc.
University of Illinois at Chicago
Date of Publication, Distribution, etc.
2014
PHYSICAL DESCRIPTION
Specific Material Designation and Extent of Item
136
GENERAL NOTES
Text of Note
Committee members: Lee, Jin Man; Officer, Lawrence H.; Pieper, Paul J.
NOTES PERTAINING TO PUBLICATION, DISTRIBUTION, ETC.
Text of Note
Place of publication: United States, Ann Arbor; ISBN=978-1-321-68619-7
DISSERTATION (THESIS) NOTE
Dissertation or thesis details and type of degree
Ph.D.
Discipline of degree
Economics
Body granting the degree
University of Illinois at Chicago
Text preceding or following the note
2014
SUMMARY OR ABSTRACT
Text of Note
This study examines the macroeconomic losses and gains of various types of monetary integration in Asia, including adopting the Chinese yuan as a common currency for 47 Asian economies. Using data from 1979 to 2011, I find that inflation bias and business cycle synchronization with China vary substantially across countries. The estimated losses and gains from the adoption are often positively related, a relationship that appears to have strengthened over time. However, a net gain comparison is feasible for individual countries. In particular, by dividing sample economies into two groups East Asia and Other Asia, the empirical results suggest that Cambodia, Indonesia, Laos, Mongolia, Myanmar, Philippines, and Vietnam are countries that will gain more and lose less from adopting the yuan than the others in my sample, so that they are the most promising candidates. I also investigate gains and losses for these Asian countries of adopting the yen or the U.S. Dollar. I find that the U.S. Dollar is a better choice for Bangladesh, India, Cambodia, Iraq, Israel, Mongolia, Pakistan, Philippines, United Arab Emirates, and Armenia than the yuan, while the yen is not considered as a promising common currency because of the Japanese deflation during the recent period.
TOPICAL NAME USED AS SUBJECT
Economics; Commerce-Business
UNCONTROLLED SUBJECT TERMS
Subject Term
Social sciences;Monetary union;Optimum currency area;Yuanization