It is difficult to identify the driving forces behind financial market developments as they are not directly observable. The paper argues that correlations between asset prices in different markets can be used to infer which of five macroeconomic factors that drive markets (growth and inflation...

Preface -- Nonlinear modelling of the relation between financial markets and economic growth in the EU / Lucian-Liviu Albu, Radu Lupu, Adrian Cantemir Calin, Institute for Economic Forecasting, Romanian Academy, Romania -- The eastern and central European financial market reaction to...

This paper investigates the macroeconomic benefits of international financial integration and domestic financial sector development for the European Union. The sample consists of 26 European countries with annual data during the period 1970.2004. We attempt to exploit more fully the temporal...