chapter  2
Macroeconomic interdependence in the APEC region
ByAkira Kohsaka
Pages 34

The crisis in Asia which started in 1997 has changed its name, from a currency crisis to a financial and then an economic crisis and finally the Asian crisis. Some say that the virtual integration through trade and investment flows in the APEC region turned out to work negatively in disseminating currency and/or economic turmoil. In the European Union, by contrast, the new unified currency started to circulate and its monetary integration appeared to reach the final stage, where virtual as well as formal integration through trade and investment has been realised over the past decades. It remains to be seen, however, whether this macroeconomic integration with one monetary and multiple fiscal authorities will work well or not.