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Global bond portfolios and EMU

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  • Lane, Philip R.

Abstract

We examine the bilateral composition of international bond portfolios for the euro area and the individual EMU member countries. We find considerable support for "euro area bias": EMU member countries disproportionately invest in one another relative to other country pairs. Another striking pattern is the positive connection between trade linkages and financial linkages in explaining asymmetries across EMU member countries in terms of their outward and inward bond investments vis- JEL Classification: E4, F2, F3, F4

Suggested Citation

  • Lane, Philip R., 2005. "Global bond portfolios and EMU," Working Paper Series 553, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2005553
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    More about this item

    Keywords

    bond portfolios; EMU; financial integration;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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