Some economists here have proposed that Korea, Japan, and China unite to create a pan-East Asian currency, something a bit like the Euro. This was covered in The Korea Times just recently. For the life of me, I simply can’t see Korea entering into a monetary union with Japan. And I’m not too sure how Japan would feel about being in a monetary union with China and Korea. The yen is one of the most sought after reserve currencies in the world.
When Germany abandoned the Deutsche Mark in favor of the Euro, it was a difficult thing, as the Deutsche Mark had proven to be one of the most stable currencies in the world. Germany’s central bank had a well-earned reputation for stability admidst the storms. The German people took a great deal of pride in the Deutsche Mark.
The Euro is now battling storms of its own now, given that some of the Eurozone states such as Portugal and Greece are, well, in very serious straits right now. The subprime crisis was not merely an American phenomenon, as countries such as Spain and Ireland did their own subprime lending. The euro is now receiving its first really difficult test. The European Central Bank is determined to do what they can to prevent the IMF from having to bail out Eurozone members, something which would be disastrous on all of the member states. Time will tell what they can do.
You can read about these proposals by clicking here.