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This paper reviews the factors that will determine the shape of financial markets under EMU. It argues that financial markets will not be unified by the introduction of the euro. National central banks have a vested interest in preserving local idiosyncracies (e.g. the Wechsels in Germany) and...
Persistent link: https://www.econbiz.de/10009768844
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This paper examines the Lucas Paradox and the Allocation Puzzle of international capital flows referring to a panel data set of EMU countries and major industrialized and emerging economies. Overall, the results do not provide evidence in favour of the Lucas Paradox and the Allocation Puzzle....
Persistent link: https://www.econbiz.de/10010359511
The financial crisis in Europe has resulted in a new assessment of monetary and financial integration both in Europe … liquidity facility, are potential benefits of monetary and financial integration. However, the crisis in Europe has exposed a … number of weaknesses in the approach taken in the eurozone. In Europe, there was an unresolved tension between the so …
Persistent link: https://www.econbiz.de/10010367480
Persistent link: https://www.econbiz.de/10010350728
This paper examines the Lucas Paradox and the Allocation Puzzle of international capital flows referring to a panel data set of EMU countries and major industrialized and emerging economies. Overall, the results do not provide evidence in favour of the Lucas Paradox and the Allocation Puzzle....
Persistent link: https://www.econbiz.de/10010249651
We set up a two-country, regional model of trade in financial services. Competitive firms in each country manufacture untraded consumer goods in an uncertain productive environment, borrowing funds from a bank in either the home or the foreign market. Duopolistic banks can choose their levels of...
Persistent link: https://www.econbiz.de/10011554376
The paper studies the link between the integration of European financial markets and corporate governance in Europe …
Persistent link: https://www.econbiz.de/10010503151