Edited by Koichi Hamada, Beate Reszat and Ulrich Volz
Chapter 2: The Political Economy of European Economic and Monetary Union Negotiations and Implications for East Asia
Heungchong Kim1 INTRODUCTION 2.1 The financial crisis of 1997–98 in East Asia provided a valuable—though costly—lesson for the East Asian countries in the importance of regional cooperation. In the course of the developing crisis, East Asian countries observed that neighboring countries were not at all helpful because of the lack of cooperative facilities within the region, and they were shocked by the posture of mere observance adopted by the advanced countries. The East Asian countries realized that the remarkable economic growth they had achieved over the years was based on a house of cards. After the crisis had passed, various kinds of proposals for regional economic cooperation, to strengthen economic stability as much as economic growth, were discussed and developed in East Asia, including the Chiang Mai Initiative, a burgeoning number of regional free trade agreements (FTAs), potential East Asian bond markets, and so on. While trying to develop proper institutions and tools for regional economic cooperation, it is strongly recommended that East Asia take an interest in the European economic integration process, investigate Europe’s past experiences, and creatively adapt them to East Asia’s circumstances and needs. The creation of Economic and Monetary Union (EMU) in Europe with the introduction of the euro is a good example of economic and monetary integration that East Asia could follow. An examination of the competing views among the European Union (EU) member states on the path to monetary integration and how they were subsequently resolved provides important insights for East...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.