EMU, Financial Markets and the World Economy pp 143-156 | Cite as
Financial Markets and the Euro
Chapter
Abstract
The introduction of the euro is likely to create deeper, more liquid, transparent, and informationally efficient European capital markets. This should lead to a lower cost of capital for firms that raise capital in euros and encourage greater trading activity. These benefits will be shared by market participants both inside and outside the European Monetary Union (EMU).
Keywords
Exchange Rate Monetary Policy Fiscal Policy Real Exchange Rate Purchase Power Parity
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References
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© Springer Science+Business Media New York 2001