JCRB ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS MARCH 2012 VOL 3, NO 11 Single Currency for South Asian Countries Syed Atif Ali Lecturer Lahore Business School, the University of Lahore Muhammad Ramzan Asst. Professor Hailey College of Commerce, The University of Punjab Amir Razi Lecturer Lahore Business School, the University of Lahore Rehmat Ali Lahore Business School, the University of Lahore Abstract This research paper focus on single currency for Asian countries, just like EURO. It includes literature review on variables. Discussion is done on basis of literature. Conslusions are drawn at the end to support literature. Keywords: Single Currency ; South Asian Countries Introduction: The launch of the EURO as a single European currency caused observers to believe will soon facilitate growth, employment and sound budgets in the participating nations. However, disappointed performance of euro land's economy compared o the USA and some EU countries who opted against the EURO is a cause for concern among political and economists and subjects to intensive research. This paper attempts to describe why the tendency clammy wages in Europe in combination with the loss of monetary autonomy by the EMU member's states causes EURO ZONES GDP to almost stagnant. The paper organized as follow start with the short discussion of the importance of money supply ,European monetary union(EMU), economic unions, advantages and disadvantages, how the European interest rates used to form exchange rates. This paper will describe how countries form a single currency and what are the measures through which countries can join each other for a single currency and what of the disappointments they have to bear. Just about eight years after the launch of the euro differences in the macro- economic performance of the participating countries raise concern, the single currency has been detrimental to the ambitious European goals of stimulating growth, job creation and COPY RIGHT C 2012 Institute of Interdisciplinary Business Research 100
JJCRB MARCH 2012 _VOL 3, No 11 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS achieving more balanced budget. Rather, the EMU-region as a whole has been reporting for years lower output growth than other foremost competitors worldwide. Economic growth since Euro introduction in 2002 has averaged 1.8% per year - well below the outcome of the US (3.1% yoy), but also less than some EU, yet non-EMU nations like UK, Sweden and Central and Eastern Europe. Admittedly, Spain, an Euro zone participant, has outpaced the big three continental EMU-economies too. In Euro land free labor reallocation between the member countries is constrained due to various barriers - language and cultural idiosyncrasy, unemployment benefits, different social insurance systems, and so forth. Countries were looking for the economic integration to boost up their trade. But this create some serious problems after joining he as EU. Countries which were already specialized in manufacturing and industry took benefit for this but those countries which were not strong enough not have organized setup for industry and trade they have to suffer a lot. This paper will provide