The Feasibility of the ASEAN Monetary Union (AMU) : Evidence from a Meta Analysis of the Supply and Demand Shock Correlations

The lingering memory of the 1997 Asian Financial crisis coupled with the successful establishment of the European Union in 1999 with the common currency namely the Euro has triggered a great deal of research interest on the optimality of ASEAN as a Common Currency Area. A meta-Analysis of studies focusing on East Asia and ASEAN is examined in this paper to garner evidence in support or otherwise of the feasibility of the formation of the ASEAN Monetary Union (AMU). The results based on the Meta- Analysis of the supply and demand shock correlations basically indicate a two speed monetary integration for ASEAN-5 with Malaysia, Singapore and Indonesia taking the fast lane while Philippines and Thailand can take the slow lane