This is obvious if we look how difficult it is in Europe to comply with the Stability and Growth pact. The introduction of a single currency by itself does not solve problems in each economy. Neither does it yield economic growth.
The full potential of a common currency can only be realized in so far as respective economies tackle structural problems in the process of achieving a monetary union. 2  BIS Review 67/2004  Asian economies would experience significant dislocations if they were to form a monetary union without disciplined economic policies.