Economies, Volume 12, Issue 1
2024 January - 25 articles
Cover Story: The euro was launched on 1 January 1999 as a common currency for members of the European Union under the Maastricht Treaty. The Maastricht Treaty calls for the coordination of major macroeconomic policies. This paper empirically tests the impact of the euro on the degree of market integration by looking at the co-movement of the European equity markets and a sample of OECD equity markets. The results show that cross-country divergences in stock markets continued after the introduction of the euro. There is no evidence of co-integration after the adoption of the euro. Cross-country portfolio diversification continues to be beneficial even among euro countries. View this paper - Issues are regarded as officially published after their release is announced to the table of contents alert mailing list .
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