V. CONCLUSION
Based on our extensive research on the sole existing monetary union in the world today, the group has realized that the benefits of a single currency outweigh its costs. In Europe's case, thought there may have been indeed significant short term costs to be incurred, the group feels that in the long run, adopting a single currency shall definitely contribute to economic growth, stability and prosperity among member countries.
What made it possible for Europe to succeed in its monetary union was that most of the countries manifested potential for higher degrees of trade integration, macroeconomic convergence integration, coupled with similar responses of the country to external price shocks, mobility of the factors of production particularly labor. They also exhibited price and wage flexibility to increase competitiveness among member countries.
In Asia however, no purely Asian institutions has emerged to establish a political, military, economic or monetary structure. Moreover, they adapted different exchange rate mechanisms. They also had significantly different state of economies among individual countries which points to a great degree of difficulty and apprehension to integrate the region under a single currency. Concurrently, industrial countries in Asia would definitely refuse to integrate with third world countries within a single monetary system for they would not realize any feasible benefit.
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