Monetary Cooperation in South Asia: Potential and Prospects

Abstract: This paper examines the potential and prospects of monetary cooperation in South Asia. A close appraisal of optimum currency area criteria, macroeconomic convergence criteria, and geo-political factors suggests that there are huge potential and growing prospects for monetary cooperation in the region. The study recognizes that monetary cooperation is essential for growth and prosperity in the region, but a lot more needs to be done to achieve the goal of monetary and economic union. The paper suggests road map on the way to the full form of monetary cooperation in the region.