Asia Europe Journal

, Volume 11, Issue 4, pp 355–376 | Cite as

Lessons of the European crisis for regional monetary and financial integration in East Asia

  • Ulrich VolzEmail author
Original Paper


The debt crisis in several member states of the euro area has raised doubts on the viability of the European Economic and Monetary Union (EMU) and the future of the euro. While the launch of the euro in 1999 stirred a lot of interests in regional monetary integration and even monetary unification in various parts of the world, including East Asia, the current crisis has had the opposite effect, even raising expectations of a break-up of the euro area. Indeed, the crisis has highlighted the problems and tensions that will inevitably arise within a monetary union when imbalances build up and become unsustainable. This article discusses the causes of the current European crisis and the challenges that EMU countries face in solving it. Based on this analysis, it derives five lessons for regional financial and monetary cooperation and integration in East Asia.


International Monetary Fund Euro Area Monetary Union East Asian Country Banking Crisis 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



Helpful comments by Charles Adams, Giovanni Capannelli, Gunter Dufey, Yüksel Görmez, Raffaele De Marchi, Masahiro Kawai, Mario Lamberte, Peter Morgan, Jae-Ha Park, T.N. Srinivasan, Shigeo Kashiwagi and other participants at presentations given at the Asian Development Bank Institute, the Lee Kuan Yew School of Public Policy, the Chinese Academy of Social Sciences, the UN Economic and Social Commission for Asia and the Pacific, the Thailand Development Research Institute and Chulalongkorn University as well as by two anonymous referees are gratefully acknowledged. The usual disclaimer applies.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.SOASUniversity of LondonLondonUK
  2. 2.German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE)BonnGermany

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