01822cas a2200241 a 4500 AALejournalIMF009448 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451867305 1018-5941 BD-DhAAL BD-DhAAL Shirono, Kazuko. Real Effects of Common Currencies in East Asia / Kazuko Shirono. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Since the 1997 Asian currency crisis, new interest has emerged in the formation of a common currency area in East Asia. This paper provides estimates of trade and welfare effects of East Asian currency unions, using a micro-founded gravity model. Counter-factual experiments to assess the effects of various hypothetical currency arrangements for East Asia suggest that an East Asian currency union will double bilateral trade in the region, but the resulting welfare effects will be moderate. However, if Japan, a major trade partner for East Asia, is included in the union, welfare effects increase substantially. The evidence thus suggests that certain regional currency arrangements in East Asia will stimulate regional trade rigorously and can generate economically significant welfare gains. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2007/166 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/166/001.2007.issue-166-en.xml IMF e-Library