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Theory of optimum currency area

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Over the past three decades, trade and investment between countries in East and Southeast Asia have grown quickly, and many people have suggested that it may be better economically for the whole region to use a single currency. Based on the theory of Optimum Currency Area (OCA), evaluate whether in today's economic background it is suitable to consider this idea.

Please give an assessment, and examples, on whether this geographical region can satisfy the criteria of an OCA.

Reference no: EM132607399

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