International Financial Integration

Online-Ressource (XVII, 389p. 44 illus)

online resource

1 The Global Interdependence of National Financial Markets1.1 Many signs of increasing market integration -- 1.2 Previous integration studies demonstrate difficulties in measurement and interpretation -- 1.3 The aim is to measure the level of financial integration -- 1.4 Different forms of financial integration -- 1.5 Interest rate differential or capital flow as dependent variable? -- 1.6 What types of interest rate are relevant to an analysis of financial integration? -- 1.7 What interest rates are the "leaders", as the influence of the US rate declines? -- 1.8 Why is the level of financial integration interesting in a macro-perspective? -- 1.9 What is the significance of the level of financial integration in a micro or corporate perspective? -- 1.10 Is the interest rate in a small open economy determined on foreign markets? -- 1.11 Growing uncertainty raises demands for higher risk premiums -- 1.12 The internationalization of trade -- 1.13 The internationalization of financing -- 1.14 The internationalization of production -- 1.15 Design of the analysis -- 1.16 Plan of the book -- 2 What Is Financial Integration, and Can It Be Measured? -- 2.1 Introduction -- 2.2 Are interest rates determined at home or abroad? -- 2.3 Capital flows and the links between markets -- 2.4 Exchange rate determinants and market expectations -- 2.5 Transaction costs and different types of risk premium -- 2.6 The link between risk and return -- 2.7 Financial integration and monetary autonomy - some measures and analytical approaches -- 2.8 Applied definition and the choice of model -- 2.9 Disintegration and monetary autonomy by way of controls -- 2.10 Problems of measurement and standardization -- 2.11 Collecting primary data -- 2.12 Concluding comment on the methodological problems -- 2.1 Fisher (Domestic) Effect -- 2.2 Variability in interest rates after tax -- 2.3 The International Fisher Effect -- 2.4 Model for determining the exchange rate -- 2.5 Example of a portfolio approach -- 2.6 The interest rate parity theory -- 2.7 Swedish industrial groups with a turnover exceeding SEK 1 billion in 1981 -- 3 Results and Findings from Earlier Studies of Financial Integration -- 3.1 Introduction -- 3.2 Studies of the interest-sensitivity of capital flows -- 3.3 Equal expected returns as an indicator of direct financial integration -- 3.4 Observations from the literature - a summary -- 3.1 Adjusting portfolios in an open economy -- 4 Characteristic Features of the Financial Market in a Small Open Economy - the Case of Sweden -- 4.1 Introduction -- 4.2 Actors on the Swedish financial market -- 4.3 Rates of interest and administrative control mechanisms -- 4.4 Swedish exchange controls and their effect on segmentation -- 4.5 The Swedish krona - historical exchange rate patterns and the formation of expectations on the market -- 4.6 Specific measurement problems -- 4.1 Date of abolition of monetary policy regulations, 1978-85 -- 4.2 Exchange rate index -- 4.3 Standard deviations in the forward and spot rates -- 4.4 Foreign exchange flows 1974-84 -- 4.5 Current account reporting according to SCB -- 5 Fluctuations in Swedish Interest Rates - Historical Patterns -- 5.1 Introduction -- 5.2 Nominal and real Swedish interest rates 1974-84 -- 5.3 Correlation between successive quotations of Swedish interest rates -- 5.4 The interest rate pattern and direct financial integration -- 6 Swedish Interest Rate Fluctuations in an International Perspective -- 6.1 Introduction -- 6.2 How Swedish nominal interest rates deviate from foreign interest rates -- 6.3 Deviations of Swedish real interest rates from foreign real interest rates -- 6.4 What does this initial comparison suggest about financial integration? -- 7 Swedish Interest Rate Dependence: A Correlation Analysis -- 7.1 Introduction -- 7.2 Covariation between Swedish and foreign real interest rates -- 7.3 Covariation between the Swedish nominal interest rate and the foreign rate -- 7.4 Covariation between the Swedish interest rate and the forward-covered foreign interest rate -- 7.5 The correlation analysis and direct financial integration -- 8 A Model-Based Analysis of Direct Financial Integration -- 8.1 Introduction -- 8.2 Analysis of deviations from the International Fisher Effect -- 8.3 Analysis of deviations from interest rate parity -- 8.4 The forward rate as an unbiased estimate of the future exchange rate -- 8.5 Presentation of the model -- 8.6 Analysis of the gap between Swedish and foreign discount rates -- 8.7 Analysis of the gap between Swedish and foreign interest rates on treasury discount notes -- 8.8 Analysis of the gap between Swedish and foreign prime rates -- 8.9 Analysis of the gap between the Swedish interest rate on government bonds/government notes and the corresponding foreign rate -- 8.10 Analysis of the gap between Swedish and foreign interest rates on industrial bonds -- 9 Interest Rate Autonomy and the Foreign Dependence of the Swedish Financial Market - A Summary -- Supplement 1 Mean and standard deviation in the international interest rates 1974-84 -- Supplement 2 List of variables and abbreviations.

10.1007/978-3-642-61293-0 [DOI]

ECONIS - Online Catalogue of the ZBW