The Association of South East Asian Nations (ASEAN) is among several regional blocs that
have received praise from economists for making significant progress towards developing
intra- and extra-regional economic relationships. However, opinions differ over the extent of
ASEAN’s potential for integration. This paper reviews the performance o f and prospects for
the group’s intra- and extra-regional integration. It also reviews the performance of individual
members in order to assess whether ASEAN integration could potentially lead to a monetary
union in the future. We provide an overview of trade performance and a comparison of three
macroeconomic variables: inflation; interest; and exchange rates. We observe that ASEAN
members are in a favourable position to form a strong economic zone in the near future, but
adopting a common monetary policy is less plausible.