Financial Policy Cooperation in SAARC: A First Step towards Greater Monetary Integration in South Asia

Abstract

As intra-SAARC trade increases, there is a growing need for higher levels of intra- SAARC financial policy cooperation to ensure a stable financial environment by limiting uncertainty for payments. This will facilitate the process of regional trade integration. The experience in Europe suggests that both cooperation in intra- SAARC regional monetary and liberalization policy along with the setting up of an institution to manage trade and payments could contribute towards laying the foundation for future financial coordination with eventual higher levels of mon etary integration within the SAARC region. The paper highlights some areas in this regard, and discusses some paths for greater financial cooperation in South Asia.

Patterns of Shocks and Regional Monetary Cooperation in South Asia

“…SAARCFINANCE may also be able to begin preliminary work for developing a comprehensive and integrated road map toward greater cooperation, which would not be inconsistent with the broad objectives of the organization (as stated in its Terms of Reference). Doing so would also be consistent with Dasgupta and Maskay (2003). This paper ends by reflecting on the absence of political commitment to integration in SA.…”

Patterns of Shocks and Regional Monetary Cooperation in South Asia

“…SAARCFINANCE may also be able to begin preliminary work for developing a comprehensive and integrated road map toward greater cooperation, which would not be inconsistent with the broad objectives of the organization (as stated in its Terms of Reference). Doing so would also be consistent with Dasgupta and Maskay (2003).…”

South Asian Monetary Integration in Light of the Optimum Currency Area Criteria Patterns of Shocks: A Reply

“…Likewise, on the financial side, a road map is also critical for appropriate timing and sequencing, to provide for optimal growth of economic integration in the region. In this reference, I would point out that one example of a blue-print for greater financial cooperation in South Asia has been proposed by Dasgupta and Maskay (2002) .…”