investors preferred portfolio assets of countries where the central bank gave relative importance to money. As for EMU, once … among euro area countries have increased due to the catalyst effect of EMU. Country's shares in the world market portfolio …, home bias, initial degree of misallocation across countries, past returns, diversification benefits and EMU can explain 35 …

-euro area assets/liabilities, before stage 3 of EMU. A number of key factors determining the currency distribution of …