European Capital Markets With a Single Currency

by Dermine, Jean; Hillion, Pierre

• ISBN13: 9780198295396
• ISBN10: 0198295391
• Format: Hardcover
• Copyright: 1999-04-08
• Publisher: Clarendon Press

Summary

One of the greatest events in financial history will occur in 1999: the birth of the euro and the emergence of a unified European capital market. This is the first academic text to consider the medium term impact of a single currency on these markets. It tackles several key questions: Once the euro is in place, what is likely to change in European capital markets? How is the structure of the bond, equity, and derivative markets going to be affected? Are these markets going to be integrated? Is the disappearence of exchange rate uncertainty going to affect risk premium on the equity and corporate debt markets? Is the euro going to compete with the US dollar, and does this matter? Is the introduction of the euro likely to change the sources of competitive advantages of financial institutions? What are going to be the key factors for success in the industry? The European Capital Markets Institute commissioned a report to address these issues. Drawn from various countries and fields of research - banking, economics, and finance - the contributors analyse the structural effects of the introduction of euro on European capital markets.

Table of Contents

List of Contributors
European Capital Markets: Does the Euro Matter?	1	(32)
Jean Dermine
Part I. The Macroeconomics of EMU
EMU, Monetary Policy and Capital Markets	33	(43)
Daniel Gros
Karel Lannoo
An International Role for the Euro?	76	(31)
Charles Wyplosz
Part II. The Fixed-Income Markets
Yield Spreads and Optimal Public Debt Management under the Single Currency	107	(27)
Lars Tyge Nielsen
The Exposure of International Corporate Bond Returns to Exchange Rate Risk	134	(37)
Gordon Delianedis
Pedro Santa-Clara
European Futures and Options Markets in a Single Currency Environment	171	(34)
Alfred Steinherr
Part III. The Equity Markets
The Single European Currency and World Equity Markets	205	(31)
Giorgio De Santis
Bruno Gerard
Pierre Hillion
European Stock Markets and European Unification	236	(29)
Bruno Biais
Part IV. Strategic Industry Implications
The Asset Management Industry in Europe: Competitive Structure and Performance under EMU	265	(45)
Ingo Walter
The European Securities Industry under a Single Currency	310	(41)
Roy C. Smith
Index	351