Activity: Talk or presentation / Performance / Speeches › Talk or presentation - at conference › Academic
Presentation of paper: This paper scrutinizes the progress in Eurozone banking market integration on the occasion of the 20th anniversary of the common European currency. Instead of relying on the law of one price, we argue in favor of integration measures derived from cointegration and causality analyses. Using on these measures, we apply network analysis to bilateral banking market relations within the Eurozone and show how this network has evolved before, during and after the Eurozone crisis. Our results confirm that convergence towards the law of one price is not necessarily integration and that the recent rebound in correlations of national bank interest rates should not be misread as an emergence of a deep European banking network. Instead, the Eurozone crisis has fundamentally and persistently disrupted this network. Creating deep banking market integration in the Eurozone will thus remain a major challenge for policy makers in the future.
27 May 2021 → 29 May 2021
25th International Conference on Macroeconomic Analysis and International Finance