Analysing the degree of integration of the euro area: how a lack of complete markets and insufficient risk sharing raise concerns about its durability and stability Online publication date: Wed, 27-Oct-2021
by Januj Amar Juneja
International Journal of Computational Economics and Econometrics (IJCEE), Vol. 11, No. 4, 2021
Abstract: The goal of the creation of the euro area (EA) was to bring forth a common currency and interest rate structure that would reduce risk associated with trade across its members that, over time, would lead to a convergence in the prices of financial markets containing important economic variables and an increase in integration. However, in the current study, to date, we find that the states comprising the EA suffer from incomplete integration and unequal risk sharing. Even if the EA experienced full integration and it experienced complete risk sharing, to the extent that these are theoretically feasible, some states would reap inconsequential gains in the extent of their integration and ability to share risks within the EA, while its variation in integration and risk sharing would remain quite large across member states, raising concerns about the EA's durability and stability.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Computational Economics and Econometrics (IJCEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook