Endnotes

¹Paper prepared for the Asian Development Bank for the ASEAN+3, 2006–2007 research group on “Toward greater financial stability in the Asia region: Exploring steps to create Regional Monetary Units.” We thank Masahiro Kawai and Giovanni Capanelli for the discussion and comments resulting from the conference, but we, the authors, remain solely responsible for the views expressed here.

²Kawai and Takagi (2005); Kuroda and Kawai (2002).

³To start rather than to crown regional integration with financial market cooperation was argued in Boiscuvier and Steinherr (2004).

⁴The second author was the vice president of the EBA.

⁵An alternative indicator with weights of 25% for GDP and finance and 50% for regional trade shares would leave the weights for the PRC or Korea roughly unchanged but would lower Japan’s weight by 10% which would be redistributed to smaller countries. The advantage of such a weighting would be greater ownership by small countries, greater diversification, and higher financial returns. So the ACU would become more attractive for holders of ACU-denominated securities.

⁶Interest rate information for Brunei Darussalam was unavailable for that time frame.

⁷The ACU retained here is the one defined in Table 5.

⁸This is analyzed in Steinherr et al. (2006).

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