Japanese Yen Emerges as Key Currency in East Asian Stability
The article explores whether East Asian countries like ASEAN plus three (China, Korea, Japan) could benefit from using a common currency basket to stabilize exchange rates. By analyzing real effective exchange rates, they found that the Japanese yen can be considered a regional currency alongside other East Asian currencies after the Asian crisis. This suggests that the region may be moving towards a more integrated currency system for better financial stability.