IntroductionThe goal of every economist and politician is to optimize the economy of their respective countries so as to improve the global economy with limited resources . Adopting a monetary union is beneficial in many cases, but harmful in others. A monetary union consists of several countries sharing a single form of currency, often consisting of a single market and a customs union. Participating countries can also influence each other's economic and foreign policies. As is known, the Japanese economy boomed after World War II. In the 1980s, Japan moved from a low-wage economy to a higher-wage economy. However, over the next decade the economy stagnated. Even through extensive public works programs and increased internal money flows, prices remained deflated until the Bank of Japan purchased approximately seventy trillion yen worth of bonds and securities. Recently, Japan has become one of the leading exporters among the world's open economies. The Japanese financial system was supported by its own form of currency called the yen. Joining a monetary union carries many risks and rewards. Not only would this union affect Japan, but it would also have a huge impact on the entire region. In recent years, many Asian countries have favored a floating exchange rate rather than relying on a unified currency, which would make it difficult to form a monetary union. If this is true, what impact would joining a monetary union have on the Japanese economy? Annual growth in gross domestic product was estimated at 1 percent. With ...... middle of paper ......., and Web. April 22, 2014 http://www.philipallanupdates.co.uk/getdoc/9f623b1e-0355-4793-9c66 ab12424cd0d3/EMU- Jim-Lawrence.aspx “Japan’s trade balance”. COMMERCIAL ECONOMY. Np, and Web. April 23, 2014. http://www.tradingnomics.com/japan/balance-of-trade “Rate Table Converter 1.00 Japanese Yen Rate Table.” Currency exchange table (Japanese yen). Np, and Web. April 23, 2014. http://www.x-rates.com/table/?from=JPY “Reserve Bank of New Zealand.” The advantages and disadvantages of monetary union: a reserve bank's point of view. Np, and Web. April 23, 2014. http://www.rbnz.govt.nz/research_and_publications/speeches/2000/0091114.html Weisenthal, Joe. “Who are Japan's main trading partners and what do they trade? » Business Insider. Business Insider, Inc. March 22, 2011. Web. April 22, 2014. http://www.businessinsider.com/who-are-japans-big-trading-partners-and-what-do-they-trade-2011-3