Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms … remain unknown. We investigate the underlying channels of the euro's effect on financial integration using data on bilateral … euro's impact on financial integration is primarily driven by eliminating the currency risk. Legislative …

Obstfeld and Taylor (2004). We find evidence that capital market integration within the EU is less than what is implied by …

countries. Risk sharing from factor income flows is higher for Euro zone countries, at 14 percent, reflecting increased … international asset and liability holdings in the Euro area …

This paper develops the thesis that credit market frictions may be an important contributor to high unemployment in … market imperfections, so unemployment rises and remains high for an extended period. The data show that there has not been … industries is lower than in the U.S.. This suggests that although credit market imperfections are unlikely to have been the major …