Building the Financial Foundations of the Euro

by Watson; Max

• ISBN13: 9789279052958
• ISBN10: 9279052950
• Edition: 1st
• Format: Nonspecific Binding
• Copyright: 2008-08-04
• Publisher: Routledge

Summary

The introduction of the euro as a common currency and the establishment of the Economic and Monetary Union (EMU) have in a very short time changed the financial landscape of Europe. Major restrictions on financial flows across the borders of the European Union's Member States have been abolished and the European Union is now gradually being transformed into one huge common financial market. This ongoing process is having far-reaching consequences. The financial transformation of Europe raises issues concerning financial stability and fragility, financial supervision, risk-sharing across capital markets, the transmission mechanism of monetary policy, and the character and speed of the adjustment process in the euro area - to name just a few. These issues are examined in depth in the contributions to this volume, prepared by leading international experts in this rapidly changing field. Book jacket.

Table of Contents

Notes on contributors	p. viii
Preface	p. xiv
Overview	p. 1
Introduction	p. 3
Financial markets in the euro area: realizing the full benefits of integration	p. 19
Monetary integration: convergence and adjustment	p. 27
Moving to monetary union	p. 29
Catch-up, the transition to full participation in EMU and financial stability	p. 31
Adjusting to the euro	p. 56
Booms and busts: experiences with internal and external adjustment	p. 84
Financial stability in emerging Europe	p. 111
Living inside a monetary union	p. 125
Adjustment in EMU: a model-based analysis of country experiences	p. 127
Housing markets and adjustment in monetary union	p. 161
Financial integration: convergence and adjustment	p. 195
Setting the scene	p. 197
Regional interest rates within a monetary union: lessons from the United States	p. 199
Where does capital flow? A comparison of US states and EU countries 1950-2000	p. 222
Declining home bias and the increase in international risk sharing: lessons from European integration	p. 242
Banking across borders	p. 259
Economic integration and financial stability: a European perspective	p. 261
Banking integration and co-movements in EU banks' fragility	p. 281
Challenges to banking stability in the EU: a survey	p. 306
Policy challenges	p. 335
Financial supervision in Europe: a proposal for a new architecture	p. 337
Cross-border banking: challenges for deposit insurance and financial stability in the European Union	p. 355
The search for the elusive twin goals of monetary and financial stability	p. 404
Index	p. 431
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