Financial Markets and the Euro

  • Victor A. Canto
  • Robert I. Webb


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).


Exchange Rate Monetary Policy Fiscal Policy Real Exchange Rate Purchase Power Parity 
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  3. Fama, E.F. (1970), “Efficient Capital Markets: A Review of Theory and Empirical Work,” Journal of Finance, 25: 383–417.CrossRefGoogle Scholar
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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Victor A. Canto
    • 1
  • Robert I. Webb
    • 1
  1. 1.LaJolla EconomicsUniversity of VirginiaUSA

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