Impact of currency unification on trade in Europe: Lessons for the Asian region

Abstract

Currency Unions have been an issue of debate among economists for a long time. Do currency unions provide an economic benefit? If so, what are they? Or do currency unions create tensions between countries? These questions have gained momentum over the past two decades, mainly due to the monetary integration of many European economies and the introduction of the Euro. Whether this union is a success or a failure is a question for which an answer can be arrived at only in the long run. However, the initial results of this union throw positive light on the subject.