DOCSLIB.ORG

Measuring Financial Integration in the Euro Area

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Measuring Financial Integration in the Euro Area A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Baele, Lieven; Ferrando, Annalisa; Hördahl, Peter; Krylova, Elizaveta; Monnet, Cyril Research Report Measuring financial integration in the euro area ECB Occasional Paper, No. 14 Provided in Cooperation with: European Central Bank (ECB) Suggested Citation: Baele, Lieven; Ferrando, Annalisa; Hördahl, Peter; Krylova, Elizaveta; Monnet, Cyril (2004) : Measuring financial integration in the euro area, ECB Occasional Paper, No. 14, European Central Bank (ECB), Frankfurt a. M. This Version is available at: http://hdl.handle.net/10419/154467 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu OCCASIONAL PAPER SERIES NO. 14 / APRIL 2004 MEASURING FINANCIAL INTEGRATION IN THE EURO AREA by Lieven Baele, Annalisa Ferrando, Peter Hördahl, Elizaveta Krylova and Cyril Monnet OCCASIONAL PAPER SERIES NO. 14 / APRIL 2004 MEASURING FINANCIAL INTEGRATION IN THE EURO AREA by Lieven Baele 1, Annalisa Ferrando 2, Peter Hördahl 2, Elizaveta Krylova 2 and Cyril Monnet 2 In 2004 all ECB publications will feature a motif taken This paper can be downloaded from from the €100 banknote. the ECB’s website (http://www.ecb.int). 1 Department of Financial Economics, Ghent University. 2 European Central Bank. This paper draws on the results of a project on Measuring financial integration in the euro area, conducted while Lieven Baele and Elizaveta Krylova were visiting the ECB. The authors would like to thank Geert Bekaert, Jesper Berg, Vitor Gaspar, Philipp Hartmann, Hans-Joachim Klöckers, Francesco Mongelli and Francesco Papadia for providing useful comments at various stages of the project, as well as an anonymous referee for helpful suggestions. The views expressed in this paper are those of the authors and do not necessarily reflect those of the ECB or the Eurosystem. © European Central Bank, 2004 Address Kaiserstrasse 29 60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main Germany Telephone +49 69 1344 0 Website http://www.ecb.int Fax +49 69 1344 6000 Telex 411 144 ecb d All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. The views expressed in this paper do not necessarily reflect those of the European Central Bank. ISSN 1607-1484 (print) ISSN 1725-6534 (online) CONTENTS 1 INTRODUCTION 4 APPENDIX 1: DESCRIPTION OF THE CORPORATE BOND DATASET AND FILTERS 82 2 FINANCIAL INTEGRATION: DEFINITION AND APPENDIX 2: ESTIMATION RESULTS FOR EUROPEAN BENEFITS 6 AND US SHOCKS SPILLOVER 2.1 Definition of financial integration 6 INTENSITIES 83 2.2 Benefits of financial integration 7 10 REFERENCES 89 3 A COMMON FRAMEWORK FOR MEASURING EUROPEAN CENTRAL BANK OCCASIONAL PAPER FINANCIAL INTEGRATION 11 SERIES 95 3.1 Price-based measures of financial integration 12 3.2 News-based measures 18 3.3 Quantity-based measures of financial integration 21 4 EURO AREA MONEY MARKETS 23 4.1 Market developments 23 4.2 Measures of integration 25 4.3 Summary 33 5 EURO AREA GOVERNMENT BOND MARKETS 34 5.1 Market developments 34 5.2 Measures of integration 36 5.3 Summary 44 6 EURO AREA CORPORATE BOND MARKETS 45 6.1 Market developments 45 6.2 Measures of integration 48 6.3 Summary 54 7 EURO AREA BANK CREDIT MARKETS 55 7.1 Market developments 55 7.2 Measures of integration 56 7.3 Summary 66 8 EURO AREA EQUITY MARKETS 67 8.1 Market developments 67 8.2 Measures of integration 69 8.3 Summary 79 9 SUMMARY AND CONCLUSIONS 80 ECB Occasional Paper No. 14 April 2004 3 1 INTRODUCTION During the last decade, the European financial financial stability. Monitoring integration is landscape has changed dramatically, and the therefore important for regulators and central establishment of Economic and Monetary banks. The ECB explicitly expressed its interest Union (EMU) seems to have accelerated the in financial integration in a recent ECB Monthly pace of these changes. One important change Bulletin article on “The integration of Europe’s has been the continued process of integration in financial markets” (ECB, 2003a).3 Tellingly the European financial markets, which has brought main topic of the 2nd ECB Central Banking about a surge in cross-border trading. However, Conference was the transformation of the some segments of the market seem to have made European financial system (see Gaspar et al., greater progress than others in terms of 2003). integration. European financial integration is an important issue, since both economic theory and Given these reasons for monitoring financial empirical findings suggest that the integration integration, this paper proposes a number of and development of financial markets are likely measures to quantify the state and evolution of to contribute to economic growth by removing financial integration in the euro area. We focus frictions and barriers to exchange, and by explicitly on the euro area and its member allocating capital more efficiently. To this end, a countries, rather than on euro-currency markets number of initiatives promoting greater which are located both within and outside the integration in European financial markets, such area. The measures proposed here are applied to as the Financial Services Action Plan (FSAP)1, a number of key markets, namely the money, have been pursued and both policy makers and corporate bond, government bond, credit and market participants are discussing new ones. equity markets. Hence, the paper’s main While it is generally agreed that deepening objective is to present a set of specific measures financial integration is beneficial on the whole, to assess (1) the current level of integration in it is also conceivable that it may have less different euro area financial markets and (2) positive effects. For example, too much whether integration is progressing, stable or consolidation in a market segment might hinder regressing. In order to facilitate the comparison competition.2 As a consequence, it is extremely across markets, we devise a common important to monitor and understand the methodological framework built upon a precise process of financial market integration. In definition of financial integration. Our addition, insofar as policymakers and private agents see good reasons to promote further 1 See EU Commission 1999 and the website http://europa.eu.int/ comm/internal_market/en/finances/actionplan/index.htm. integration, it is important to measure 2 Financial integration obviously does not necessarily have accurately the state of integration in various implications for consolidation in some market segments. While integration may lead to further consolidation in an industry, due to segments of the market so that we may identify increased competition for instance, there is no direct causal link areas where further initiatives are particularly between integration and consolidation. needed. 3 The ECB interest in financial integration has already resulted in several activities and undertakings. First, the Report on Financial Structures (ECB, 2002a) provides a description of the financial Financial integration is also important for other structures of the euro area countries and their recent evolution. Moreover, Cabral et al. (2002) examined the integration of the reasons. For example, since monetary policy is euro area banking market. While their study is similar to our implemented through the financial system, this analysis of the credit market, the present paper focuses mainly on system must be as efficient as possible in order measures of financial integration in retail banking activities and should be seen as a complement to the banking integration study. to guarantee a smooth and effective The structure of the banking sector has also been thoroughly transmission of monetary policy. The degree of analysed in the Banking Supervision Committee report (ECB, financial integration is therefore important in 2003b). Hartmann et al. (2003) deal with a broader set of issues than measures of integration, addressing also financial structure determining how effectively this transmission and policy initiatives. Finally, the ECB is engaged in several will work in practice. In addition, financial activities in order to promote research in financial integration, such as the ECB-CFS research network on “Capital Markets and integration affects the structure of the financial Financial on Integration in Europe” (see www.eu-financial- system, which in turn may have implications
Load more

Recommended publications
  • Financial Integration and International Business Cycle Co-Movement: Wealth Effects Vs
    Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute Working Paper No. 89 http://www.dallasfed.org/assets/documents/institute/wpapers/2011/0089.pdf Financial Integration and International Business Cycle Co-movement: Wealth Effects vs. Balance Sheet Effects* J. Scott Davis Federal Reserve Bank of Dallas September 2011 Revised: August 2012 Abstract Different types of international financial integration have different effects on cross-country business cycle co-movement. International business cycle transmission through financial integration occurs through the wealth and balance sheet effects. The balance sheet effect leads to business cycle convergence, but the wealth effect leads to divergence. Using a cross- sectional regression, this paper shows that cross-border credit market integration (debt) has a positive effect on co-movement, implying that the balance sheet effect is the main conduit for international transmission through credit markets. However, cross-border capital market integration (equity) has a negative effect, implying that the wealth effect is the main channel for international transmission through capital markets. By distinguishing between wealth and balance sheet effects, this paper resolves many discrepancies between some key empirical and theoretical findings in the open economy macro literature, between different studies in the theoretical literature, and between empirical studies that use a cross-sectional regression and those employing panel data. JEL codes: E30, E44, F40, G15 * Scott Davis, Globalization and Monetary Policy Institute, Federal Reserve Bank of Dallas, 2200 N. Pearl Street, Dallas, TX 75201. 214-922-5124. [email protected]. This paper previously circulated under the title “Financial Integration and International Business Cycle Co-movement: The Role of Balance Sheets.” I would like to thank Jean Imbs and participants at the Banque de France, CEPR conference on “The Financial Crisis: Lessons for International Macroeconomics” for many helpful comments and suggestions.
    [Show full text]
  • European Financial Integration and the Financing of Local Businesses in the New EU Member States
    ab0cd European financial integration and the financing of local businesses in the new EU member states Ulrich Volz Abstract This paper explores the degree of financial market integration between the new and old EU member states. It also considers the likely effects of the ongoing integration process on the new members’ financial sectors. In particular, the paper discusses the implications of the high concentration of financial services and the dominance of foreign-owned institutions for the provision of financial services to small and medium-sized enterprises (SMEs) in the ten accession countries. Using enterprise data on 2,427 firms, the paper finds that access to finance still constitutes a major problem for business development and that financing conditions are considerably more difficult for SMEs than for larger entities. Keywords: financial integration, large and foreign banks, banking competition, SME finance JEL Classification Number: G21, G3, O16, P34 Address for Correspondence: HWWA, World Economy Department, Neuer Jungfernstieg 21, 20347 Hamburg, Germany. Phone: +49 40 42834 276; Fax: +49 40 42834 451; E-mail: [email protected]. Ulrich Volz is at the Free University of Berlin and the Hamburg Institute of International Economics (HWWA). The views and opinions expressed are those of the author only and do not necessarily reflect the views of the European Bank for Reconstruction and Development. The paper was written during a stay at the EBRD’s Office of the Chief Economist from September 2003 – May 2004. Funding by the German Academic Exchange Service and the German Merit Foundation is gratefully acknowledged. The author would like to thank the Office of the Chief Economist for its great hospitality and support and Alan Bevan, Victoria Chick, Chris Cviic, Ralph De Haas, Elisabetta Falcetti, Steven Fries, Tanja Lysenko, Peter Sanfey and Anita Taci for fruitful discussions and valuable comments and suggestions.
    [Show full text]
  • Financial Integration, Investment, and Economic Growth. Evidence from Two Eras of Financial Globalization
    Financial Integration, Investment, and Economic Growth. Evidence From Two Eras of Financial Globalization Moritz Schularick (Free University of Berlin) * Thomas M. Steger (ETH Zurich and CESifo)** This version: April 2007 (substantially revised version of CESifo Working Paper No. 1691) Does international financial integration boost economic growth? The empirical literature has not yet established a robust link between openness to the international capital market and economic growth. In this paper we turn to the economic history of the first era of financial globalization (1880-1914) for new insights. Based on a newly compiled comprehensive data set, we test if capital market integration had a positive impact on economic growth in the first era of global finance. Using identical empirical models and techniques as contemporary studies, we find a significant growth effect which remains robust to a number of alternative specifications. To account for this finding, we show that a key difference between now and then is that opening up to the international market led to massive net capital movements and higher investment in the historical period, but no longer does so today. Unlike its historical predecessor, the current wave of financial globalization has not incited large investment augmenting flows of capital from rich to poor economies. Keywords : capital market integration; economic growth; financial globalization; economic history. JEL classification : F15; F21; F30; N10; N20; O11; O16 * John-F.-Kennedy-Institute, Free University of Berlin. Email: [email protected]. ** Corresponding author: Institute of Economic Research, ETH Zurich, Zuerichbergstr. 18, CH - 8032 Zurich, Switzerland. Tel.: +41 44 632 24 27, Fax: +41 44 632 13 62, Email: [email protected].
    [Show full text]
  • Financial Services Integration Worldwide: Promises and Pitfalls
    FINANCIAL SERVICES INTEGRATION WORLDWIDE: PROMISES AND PITFALLS Harold D. Skipper, Jr. Thomas P. Bowles Chair of Actuarial Science C.V. Starr Chair of International Insurance Georgia State University Atlanta, GA/USA 1 Table of Contents INTRODUCTION.........................................................................................................................................3 THE MULTIPLE MEANINGS AND FORMS OF FINANCIAL SERVICES INTEGRATION................3 The Meaning of Financial Services Integration.........................................................................................3 Structures for Delivering Integrated Financial Services............................................................................5 THE ECONOMICS OF FINANCIAL SERVICES INTEGRATION..........................................................8 Cost Effects ...............................................................................................................................................8 Revenue Effects.......................................................................................................................................10 Relationship between Effects and Operational Structure ........................................................................11 MANAGEMENT ISSUES IN INTEGRATION ........................................................................................11 Group Structure .......................................................................................................................................11
    [Show full text]
  • Monetary and Financial Integration in EU10 Countries
    Norbert Szijártó: Monetary and financial integration in EU10 countries Monetary and financial integration in EU10 countries Norbert Szijártó Introductory remarks This study analyses two different but interconnected aspects of late transition process in EU10 countries. With the collapse of the Council for Mutual Economical Assistance (CMEA), former satellite states in Central and Eastern Europe immediately swapped economic and political relations from the mouldering Soviet Union to the Germany leaded West. Convergence lies in the heart of EU policies, the developments in the functioning of monetary policies in EU10 countries can also be understood as an institutional catching up process. Efficient functioning of the financial markets plays a vital role in the integration process but financial markets in transition countries have been severely constrained by the lack of knowledge about cross-country risk-sharing and institutional deficiencies and lack of acquaintance of financial instruments. Moreover, the absence of adequate government support and regulatory back-up can also hinder the growth of fundamental financial market institutions. Monetary policy in EU10 countries After the regime change monetary policy has played an important role in the EU10 countries with inevitable policy and institutional changes, including the construction of independent central banks. Centrally planned economies often used substantial price distortions that were an established custom among CMEA members before. Regarding the monetary system of EU10 countries an essential question emerged whether to use monetary aggregates of fixed exchange rates as the basis for monetary policy and especially for stabilization. In several countries the technical assistance of the IMF was used to adopt and revise central bank laws because on the one hand central bank autonomy and accountability required strong legislation, and on the other hand establishing the credibility of monetary policy was a crucial issue.
    [Show full text]
  • The Impact of International Financial Integration on Industry Growth
    Faculteit Economische en toegepaste economische wetenschappen Departement economische wetenschappen KATHOLIEKE UNIVERSITEIT LEUVEN The Impact of International Financial Integration on Industry Growth 1 Ellen Vanassche Katholieke Universiteit Leuven, Naamsestraat 69, B-3000 Leuven, Belgium E-mail: [email protected] October 2004 -PRELIMINARY VERSION- Abstract The empirical relationship between financial openness and growth is examined in this paper. In contrast to a large body of cross-country work investigating this link, I study the impact of financial integration on growth at the industry level. This paper provides evidence that financial openness has a positive effect on growth of industrial sectors, regardless of their characteristics. Moreover, industries that rely relatively more on external finance grow disproportionately faster in countries with more integrated financial systems. However, this industry-specific effect of financial openness decreases when I control for the development of the domestic financial system. Finally, I test the hypothesis that financial integration improved growth also by enhancing the functioning of the domestic financial system. I find evidence of this indirect transmission channel of financial openness. JEL Codes: D92,F3, 04, 016 Key Words: Financial Integration, Financial Development, Growth 1 I would like to thank Hans Degryse, Dirk Heremans, Luc Laeven, Steven Ongena and Patrick Van Cayseele for helpful comments, and the participants of EEA-ESEM 2004 Conference and the SUERF Conference for their valuable suggestions. Financial support from the Fund for Scientific Research – Flanders (G.0302.00) is gratefully acknowledged. All remaining errors are my own. 1 Introduction The financial landscape has changed significantly since the beginning of the 1980s.
    [Show full text]
  • Basel III and Regional Financial Integration in Emerging Europe an Overview of Key Issues
    Basel III and regional financial integration in emerging Europe An overview of key issues Alexander Lehmann, Micol Levi and Peter Tabak Summary We review the likely impact of Basel III regulation within the European Union’s new member states, based on system-wide financial stability indicators and responses to consultation processes from national central banks and banking groups. Fresh regulations on liquidity ratios are likely to have the most severe impact on subsidiary funding relationships with a typically large reliance on wholesale markets. Provisions on capital quality and coverage are unlikely to represent significant impediments to existing business models but could have an impact on the region should excess capital coverage be reduced to the benefit of parents. Given the benefits from financial integration in terms of growth and financial stability, application of Basel III within emerging Europe should be based on sound coordination of prudential regulation and implementation, including in measures directed at systemic risks. Keywords: financial regulation, new EU member states, financial integration. JEL Classification Number: G21, G28. Contact details: Alexander Lehmann, One Exchange Square, London EC2A 2JN, UK, phone: +44 207 338 6072; email: [email protected] Alexander Lehmann and Peter Tabak are with the Office of the Chief Economist at the EBRD. Micol Levi is with the Regulatory Affairs Group of Unicredit SE. We are grateful for comments from Ralph de Haas and from participants in the ICFR-EBRD workshop on Basel III of March 2011, and for research assistance by Daphne Athanasouli and Eva Jansky. This paper in no way reflects on views of the EBRD or UniCredit management or related Boards nor on those of the working group on Basel III implementation established under the European Bank Coordination Initiative in May 2011.
    [Show full text]
  • Financial Integration, Financial Stability and Central Banking
    Choongsoo Kim: Financial integration, financial stability and central banking Speech by Mr Choongsoo Kim, Governor of the Bank of Korea, at the International Conference on “Financial integration, financial stability and central banking”, organized by Japan Financial Services Agency, Tokyo, 10 February 2012. * * * Good morning, ladies and gentlemen. It is a true pleasure and privilege for me to be here this morning. I am very grateful to Commissioner Hatanaka of the Financial Services Agency, Chairman Mae of Japan Securities Dealers Association, and President Saito of Tokyo Stock Exchange Group, for inviting me to this conference as a keynote speaker. As we all know, the global crisis has demonstrated how financial disruption in a major economy can quickly spill over to affect the entire world, through a complex web of interconnected markets and cross-border exposures. And while causing global recession, these spillovers also manifested themselves in diverse forms, depending upon where the weakest points in the vulnerability chain lay–for example, leading to fiscal crises in advanced economies and to abrupt capital flow reversals in emerging economies. The crisis also revealed a number of shortcomings in our financial regulation and supervision, as shown for instance by our failure to detect the systemic risk arising from pro-cyclicality and nonlinearity in asset prices. Given its far reaching impact on the financial sector and the broader economy as well, the global crisis has and will continue to cast a long shadow on financial and real activities over the coming years if not decades. But it has also brought us important lessons and new thinking about central banking, financial regulation and fiscal prudence.
    [Show full text]
  • The Impact of Financial Integration on Economic Growth Case of Maghreb Countries
    Archives of Business Research – Vol.5, No.3 Publication Date: March. 25, 2017 DOI: 10.14738/abr.53.2686. Kouki, S., & Rezgui, S. (2017). The impact of financial integration on economic growth. Case of Maghreb countries. Archives of Business Research, 5(3), 70-79. The impact of financial integration on economic growth Case of Maghreb countries Saoussen Kouki Department of Economics Faculty of Economic Sciences and Management, Tunisia Sami Rezgui Department of Quantitative Methods Faculty of Economic Sciences and Management, Tunisia Abstract The relationship between financial integration and economic growth is a vital subject. Many empirical and theoretical works affirmed that financial integration could help countries to increase their growth rate and ameliorate their life quality. The target of this work is to study financial integration effects of thirty-five years, from January 1981 until December 2014, on economic growth of the three Maghreb countries (Algeria, Morocco and Tunisia) using the ARDL approach to cointegration testing. Estimations results indicate that financial integration affects positively the economic growth of the Maghreb countries. Keywords: financial integration, economic growth, Maghreb countries, ARDL approach. INTRODUCTION The international financial integration is a very old phenomenon, its origins date back to the late 19th century, specifically 1870, during that period, the financial markets were in need of new global markets in order to invest and find more funding means. The relationship between financial integration and economic growth has always been of particular interest. Many studies have been devoted to this relationship to confirm or detract from the influence of financial integration on economic growth. Some economists say that the consequences of integration on economic growth are positive.
    [Show full text]
  • Developing Economies, International Financial Integration, and Sustainable Development Gary Dymski, University of Leeds1 25 November 2018 1
    Developing Economies, International Financial Integration, and Sustainable Development Gary Dymski, University of Leeds1 25 November 2018 1. Introduction and context This paper constitutes one contribution to the second Intergovernmental Group of Experts (IGE) session, convened by the United Nations Conference on Trade and Development as a result of the Addis Ababa Action Agenda agreed at the third international conference on financing for development in 2015. A key finding point of the first IGE session in 2017, and of research conducted by the UNCTAD Debt and Development Division, was that debt and financial stress have grown markedly amongst emerging economies since 2009, due to a large extent to debt flows from overseas lenders. This finding raised a series of questions, to be addressed in a second IGE session. These questions included: (1) how might current debt vulnerabilities in developing countries be mitigated, and developing country sovereign debt and financial crises prevented; (2) how sovereign debt financing, both external and domestic, could be leveraged for sustainable development; (3) what institutional changes are required at the global systemic level to achieve sustainable development and debt management; and (4) how to better resolve sovereign debt problems. Presentations at the 2nd IGE session responded to these questions. This paper addresses the third question – the systemic global links between developing countries and international finance. It is essential here to undertake an historically informed analysis, so as to understand advanced economies’ financial power, developing economies’ financial stress, and the problematic of financing sustainable development. After section 2 briefly describes the collapse of the formerly regulated systems of finance (focusing here on the US case), our analysis unfolds below in three steps.
    [Show full text]
  • Financial Integration at Times of Financial Instability*
    JEL Classification: C23, G12, G15 Keywords: beta-convergence, financial crisis, financial integration, gamma-convergence, new EU Member States, propagation of shocks, sigma-convergence Financial Integration at Times of Financial Instability* Jan BABECKÝ—Czech National Bank ([email protected]) Luboš KOMÁREK—Czech National Bank, Technical University of Ostrava and University of Finance and Administration, Prague ([email protected]) (corresponding author) Zlatuše KOMÁRKOVÁ—Czech National Bank and University of Finance and Administration, Prague ([email protected]) Abstract This article empirically analyzes the phenomenon of financial integration, focusing primarily on assessing the impacts of the current financial crisis. We start our analysis with an overview of cost-benefit considerations associated with the process of financial integration. We go on to examine the relationship between financial integration and financial instability, emphasizing the priority role of financial innovation. The subsequent empirical section provides an analysis of the speed and level of integration of the Czech financial market and the markets of selected inflation-targeting Central European economies (Hungary and Poland) and advanced Western European economies (Sweden and the UK) with the euro area. The results for the Czech Republic reveal that a process of increasing financial integration has been going on steadily since the end of the 1990s and also that the financial crisis caused only temporary price divergence of the Czech financial market from the euro area market. 1. Introduction Structural changes in the economic environment, such as real synchronization of economies or advanced financial integration, affect economic agents and institu- tions (i.e., central banks, national governments, and financial institutions) both indi- vidually and systematically.
    [Show full text]
  • Financial Integration and Macrofinancial Linkages in Asia Crises, Responses, and Policy Considerations October  
    $ € £ ¥ FINANCIAL INTEGRATION AND MACROFINANCIAL LINKAGES IN ASIA CRISES, RESPONSES, AND POLICY CONSIDERATIONS OCTOBER ASIAN DEVELOPMENT BANK FINANCIAL INTEGRATION AND MACROFINANCIAL LINKAGES IN ASIA CRISES, RESPONSES, AND POLICY CONSIDERATIONS OCTOBER 2020 ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2020 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 8632 4444; Fax +63 2 8636 2444 www.adb.org Some rights reserved. Published in 2020. ISBN 978-92-9262-418-7 (print); 978-92-9262-419-4 (electronic); 978-92-9262-420-0 (ebook) Publication Stock No. TCS200287-2 DOI: http://dx.doi.org/10.22617/TCS200287-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/.
    [Show full text]