DP2413 European Financial Markets After EMU: A First Assessment

Author(s):	Jean-Pierre Danthine, Francesco Giavazzi, Ernst-Ludwig von Thadden
Publication Date:	April 2000
Keyword(s):	European Monetary Union, Financial Markets, Market Integration
JEL(s):	E44, F21, F36, G15
Programme Areas:	International Macroeconomics, Financial Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=2413

This paper reviews the first evidence on the impact of European Monetary Union on European capital markets, one year after the launch of the single currency. Our assessment of this evidence is very favourable. On almost all counts EMU has either already drastically changed the European financial landscape or has the potential to do so in the future. We argue that this is less due to the well-known direct effects of EMU, such as the elimination of intra-European currency risk, than to a number of indirect consequences through feedback mechanisms that seem to have been triggered by EMU.