Behavioural Finance: Reviews on EuroZone and Brexit

After five years of research into the hot debated and my chosen topic of behavioural finance, it has become obvious that the field is a major area of studies. Over the years I have tried to provide empirical evidence that markets do tend to follow trends set by theories of behavioural finance. The evidence I presented surround the key events since the millennium; events such as the introduction of the euro, the global financial and eurozone sovereign debt crises and Brexit. As can be seen from these events, I have tended to mainly concentrate on the reaction of market participants in the European Union.The Introduction of the Euro and Eurozone Financial Markets Integration.The introduction of the euro was and still is one of the financial events of the last few decades. I was working as a software engineer at IBM at the time, the topic of the day was how will the introduction of the euro effect the transactions of many financial institutions. By the mid-2000s, I was doing an MSc in financial Management and decided to do my dissertation on the euro. By then the Euro has established itself as one of the major currencies and many thought it would challenge the US dollar. However, by the end of the 2000s the tide was beginning to turn as the weaknesses of the European monetary union were highlighted first by the recession which followed the financial crisis and then the sovereign debt crisis. These events led to a rise in nationalist tendencies across the eurozone. Funnily enough while I was writing my paper which forms chapter of this book, a dear friend and old lecturer of mines suggested I call it Happy 20th Anniversary Euro: from shining beacon of hope to ticking time bomb.