ASEAN has a long way to go to achieve financial integration, but it can learn a lot from Europe’s mistakes.
The 10 countries of the Association of Southeast Asian Nations (ASEAN) are close to creating the world’s newest economic power bloc – the ASEAN Economic Community (AEC). However, as economists Geert Almekinders, Satoshi Fukuda, Alex Mourmouras and Jianping Zhou point out, the AEC must plan and regulate on a transnational level to insulate itself from the kinds of shocks that shook the euro zone. With careful execution, financial integration will attract a surge of foreign investment and capital flows to the ASEAN region. However, as this lucid, structured and comprehensive analysis explains, various risks could imperil a project that shows huge promise. getAbstract recommends this study to investors, executives and policy makers with interests in the region.
In this summary, you will learn
- What the Association of Southeast Asian Nations’ proposed economic community will entail for its member states
- How the countries are approaching financial integration
- How learning from Europe’s mistakes can help the ASEAN Economic Community
About the Authors
Geert Almekinders, Alex Mourmouras and Jianping Zhou are economists with the International Monetary Fund. Satoshi Fukuda is in the graduate program at the University of California, Berkeley.
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Source: IMF eLibrary, 2015
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