East Asian currency union under discussion

There is a case for a currency union in East Asia but one excluding China and Japan, according to Peter Kenen, a Princeton-based academic.

Speaking at the London School of Economics yesterday, Peter Kenen set out to analyse whether countries in East Asia form an optimal currency area. One method used to test compatibility, according to Kenen, is to look at how closely economic shocks affecting one region are correlated with shocks in other countries. The higher the correlation between shocks,

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