Do the ASEAN countries and Taiwan form a common currency area?

► We explore the hypothesis that the members of the Association of Southeast Asian Nations meet necessary conditions for forming a common currency area and whether Taiwan appears a natural member of such an area. ► We test data on the ASEAN countries and Taiwan for consistency with a common currency area. ► We produce the first evidence that these five ASEAN countries and the ASEAN countries plus Taiwan meet the microeconomic criteria to form a common currency area.