Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas

Stefano Schiavo

Post-Print from HAL

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).

Date: 2008-02
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-01022326
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Published in Economica, 2008, 75, pp.168-189. ⟨10.1111/j.1468-0335.2007.00598.x⟩

Downloads: (external link)
https://sciencespo.hal.science/hal-01022326/document (application/pdf)

Related works:
Journal Article: Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas (2008)
Working Paper: Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas (2008)
Working Paper: Financial integration, GDP correlation and the endogeneity of optimum currency areas (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01022326

DOI: 10.1111/j.1468-0335.2007.00598.x

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().