Freixas, Xavier; Holthausen, Cornelia - Department of Economics and Business, Universitat … - 2001
We argue that the main barrier to an integrated international interbank market is the existence of asymmetric … information between different countries, which may prevail in spite of monetary integration or successful currency pegging. In … cross-country information is noisy. We find not only that an equilibrium with integrated markets need not always exist, but …