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European Financial Markets After EMU: A First Assessment

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Author Info
Jean-Pierre Danthine
Francesco Giavazzi
Ernst-Ludwig von Thadden

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Abstract

This paper reviews the first evidence on the impact of European Monetary Union on European capital markets, one year after the launch of the single currency. Our assessment of this evidence is very favourable. On almost all counts EMU has either changed the European financial landscape already drastically or has the potential to do so in the future. We argue that this is less due to the well-known direct effects of EMU, such as the elimination of intra-European currency risk, than to a number of indirect consequences through feedback mechanisms that seem to have been triggered by EMU.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8044.

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Date of creation: Dec 2000
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Handle: RePEc:nbr:nberwo:8044

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Find related papers by JEL classification:
E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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  19. Cooper, Ian & Kaplanis, Evi, 1994. "Home Bias in Equity Portfolios, Inflation Hedging, and International Capital Market Equilibrium," Review of Financial Studies, Oxford University Press for Society for Financial Studies, vol. 7(1), pages 45-60. [Downloadable!] (restricted)
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    Other versions:
  22. Portes, Richard & Rey, Helene, 1998. "The Euro and International Equity Flows," Journal of the Japanese and International Economies, Elsevier, vol. 12(4), pages 406-423, December. [Downloadable!] (restricted)
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    Other versions:
  25. Alessandro Prati & Garry J. Schinasi, 1997. "European Monetary Union and International Capital Markets: Structural Implications and Risks," IMF Working Papers 97/62, International Monetary Fund.
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