South Asian Economies and Feasibility of Financial Cooperation: A Meta-Analysis

Abstract

The paper is meta-analysis and addresses a policy question of feasibility of common currency among SAARC countries. It deeply investigates all those economic and political factors that contribute toward the formation of currency union. Author draws literal evidence of common currency if member states adopt framework confirming economic and political cooperation in form of market openness, liberalization of economies, direction of financial shocks, exchange rate market pressures and most importantly labor market mobility. Additionally, growth momentum among applicant countries and degree of political cooperation under the SAARC charter and diplomatic fronts would prove to achieve common goal of single currency in the time of global high and cry.