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Financial Market Integration Under EMU

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Author Info
Tullio Jappelli () (Università di Napoli, CSEF and CEPR)
Marco Pagano () (Università di Napoli, CSEF and CEPR)

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Abstract

The single most important policy-induced innovation in the international financial system since the collapse of the Bretton-Woods regime is the institution of the European Monetary Union. This paper provides an account of how the process of financial integration has promoted financial development in the euro area. It starts by defining financial integration and how to measure it, analyzes the barriers that can prevent it and the effects of their removal on financial markets, and assesses whether the euro area has actually become more integrated. It then explores to which extent these changes in financial markets have influenced the performance of the euro-area economy, that is, its growth and investment, as well as its ability to adjust to shocks and to allow risk-sharing. The paper concludes analyzing further steps that are required to consolidate financial integration and enhance the future stability of financial markets.

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Publisher Info
Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 197.

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Date of creation: 28 Apr 2008
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Publication status: Forthcoming in Euro - The First Decade, edited by Marco Buti et al., Cambridge University Press.
Handle: RePEc:sef:csefwp:197

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mark M. Spiegel, 2008. "Monetary and financial integration in the EMU: Push or pull?," Working Paper Series 2008-11, Federal Reserve Bank of San Francisco. [Downloadable!]
  2. Philip R. Lane, 2008. "EMU and Financial Integration," The Institute for International Integration Studies Discussion Paper Series iiisdp272, IIIS. [Downloadable!]
  3. Claudia M. Buch & Christian Pierdzioch, 2003. "The Integration of Imperfect Financial Markets: Implications for Business Cycle Volatility," Kiel Working Papers 1161, Kiel Institute for the World Economy. [Downloadable!]
    Other versions:
  4. Bertola, Giuseppe, 2008. "Labour Markets in EMU - What has Changed and What Needs to Change," CEPR Discussion Papers 7049, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Daniel Pérez & Vicente Salas-Fumás & Jesús Saurina, 2005. "Banking integration in Europe," Banco de España Working Papers 0519, Banco de España. [Downloadable!]
  6. Christoffer Kok Sørensen & Josep Maria Puigvert Gutiérrez, 2006. "Euro area banking sector integration - using hierarchical cluster analysis techniques," Working Paper Series 627, European Central Bank. [Downloadable!]
  7. Mariani, Fabio & Padoan, Pierre Carlo, 2003. "The Growth-Finance Nexus and European Integration: A Macroeconomic Perspective," EIFC - Technology and Finance Working Papers 23, United Nations University, Institute for New Technologies. [Downloadable!]
  8. Fritz Breuss, 2003. "Austria, Finland and Sweden in the European Union. Economic Effects," Austrian Economic Quarterly, WIFO, vol. 8(4), pages 131-158, December. [Downloadable!] (restricted)
  9. Schmitz, Birgit & von Hagen, Jürgen, 2009. "Current Account Imbalances and Financial Integration in the Euro Area," CEPR Discussion Papers 7262, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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