EconPapers    
Economics at your fingertips  
 

Convergence of EMU Equity Portfolios

Giofré, Maela/M.
Authors registered in the RePEc Author Service: Maela Giofre' (maela.giofre@unito.it)

MPRA Paper from University Library of Munich, Germany

Abstract: This paper demonstrates that, after integration, equity portfolios of countries that joined the European Monetary Union have converged at faster rate than those of NON EMU countries. This outcome canbe interpreted as a combination of the convergence of inflation rates and the convergence of investment barriers. On the one hand, the common monetary policy might have driven a stronger comovement in inflation rates, leading to increasingly similar hedging strategies among member countries. On the other hand, exposure to the common currency might have homogenized bilateral investment barriers, thus inducing increasingly similar portfolio allocations among member countries. We find that the comovement of inflation rates has not significantly increased after EMU inception, pointing toward an exclusive role for convergence in investment barriers.

Keywords: financial integration; EMU; inflation hedging; investment barriers (search for similar items in EconPapers)
JEL-codes: F21 F30 F36 G11 G15 (search for similar items in EconPapers)
Date: 2008-12
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/13927/1/MPRA_paper_13927.pdf original version (application/pdf)

Related works:
Journal Article: Convergence of EMU Equity Portfolios (2012) Downloads
Working Paper: Convergence of EMU Equity Portfolios (2009) Downloads
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:pra:mprapa:13927

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).

 
Page updated 2025-03-19
Handle: RePEc:pra:mprapa:13927