The prospects of a monetary union in East Asia

► East Asia has less symmetric underlying structural shocks than Europe. ► The speed of adjustment to shocks is much faster in East Asia than in Europe. ► There exists a scope among some small sub-regions for potential monetary integration. ► China and Korea should be excluded from any regional monetary arrangement for the time-being. ► Increased regional policy-coordination after a financial crisis has increased the symmetry of shocks among countries.