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Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas.
- Source :
- Economica; Feb2008, Vol. 75 Issue 297, p168-189, 22p, 8 Charts, 1 Graph
- Publication Year :
- 2008
-
Abstract
- The paper analyses the relationship between trade, financial integration and business cycle synchronization in the euro area. The introduction of the euro has had a noticeable impact on European financial markets. Evidence that capital market integration exerts a positive effect on output correlation has two major implications. First, it corroborates the hypothesis of the endogeneity of optimum currency areas, whereby after joining a monetary union countries better meet standard OCA criteria; second, it provides European policy-makers with yet another reason to pursue financial integration in the euro area (and in prospective members as well). [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00130427
- Volume :
- 75
- Issue :
- 297
- Database :
- Complementary Index
- Journal :
- Economica
- Publication Type :
- Academic Journal
- Accession number :
- 28024922
- Full Text :
- https://doi.org/10.1111/j.1468-0335.2007.00598.x