East Asian Currency Area: A Bayesian Dynamic Factor Model Analysis Toan Nguyen 1 Economic Research Section, 1 st Floor Engineering Building No 4 Kyoto Univeristy Yoshida Honmachi, Sakyo-ku Kyoto, Japan 606-8501 E-mail: toanjp@economics.mbox.media.kyoto-u.ac.jp This Version: April 2007 1 I thank Professor Kimio Morimune at Kyoto University, Japan for his invaluable support and Professor Gary Koop at University of Strathclyde, Scotland for his helpful suggestions in writing this paper. I am also indebted to James LeSage for his Matlab-based Econometric Toolbox.