ABSTRACT
The idea that East Asian countries would commit themselves to a monetary union in the foreseeable future is absurd. But the prospects also looked quite bleak for European monetary union (EMU) at the height of the currency crisis in September 1992, when the exchange rate mechanism of the European monetary system (EMS) appeared to be falling apart under the strain of currency speculation; many of the citizens of prospective EMU countries were having second political thoughts about voting in favor in the referendums, which were mandatory under the Maastricht Treaty, to ratify the transition to full monetary union on 1 January 1999. Sweden, Denmark and the United Kingdom opted out altogether until the dust settled. Even ardent supporters of enhanced monetary and exchange rate cooperation in East Asia are not expecting rapid progress towards a monetary union.
