Monetary integration and the cost of borrowing

With European Monetary Union (EMU), there was an increase in the adjusted spreads of euro-area sovereign securities over Germany (corrected from the foreign exchange risk), causing a lower than expected fall in borrowing costs. The objective of this paper is to study the reasons for this increase, a...

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Autor: Gómez-Puig, Marta
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2008
País:España
Institución:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/107186
Acceso en línea:https://hdl.handle.net/2445/107186
Access Level:acceso abierto
Palabra clave:Unions monetàries
Liquiditat (Economia)
Risc (Economia)
Mercat monetari
Deute
Monetary unions
Liquidity (Economics)
Risk
Money market
Debt
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spelling Monetary integration and the cost of borrowingGómez-Puig, MartaUnions monetàriesLiquiditat (Economia)Risc (Economia)Mercat monetariDeuteMonetary unionsLiquidity (Economics)RiskMoney marketDebtWith European Monetary Union (EMU), there was an increase in the adjusted spreads of euro-area sovereign securities over Germany (corrected from the foreign exchange risk), causing a lower than expected fall in borrowing costs. The objective of this paper is to study the reasons for this increase, and in particular, whether the change in the price assigned by markets was due to domestic factors (credit risk and/or market liquidity) or to international risk factors. The empirical evidence suggests that it may have been a change in the market assessment of domestic (both liquidity and default risk) rather than international factors that caused the observed increase in adjusted spreads with Monetary Integration, even though, since market size scale economies have increased since EMU, their effect differs according to the size of the market.Elsevier Ltd2008info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2445/107186Articles publicats en revistes (Economia)reponame:Dipòsit Digital de la UBinstname:Universidad de BarcelonaInglésVersió postprint del document publicat a: https://doi.org/10.1016/j.jimonfin.2008.01.008Journal of International Money and Finance, 2008, vol. 27, num. 3, p. 455-479https://doi.org/10.1016/j.jimonfin.2008.01.008(c) Elsevier Ltd, 2008info:eu-repo/semantics/openAccessoai:diposit.ub.edu:2445/1071862026-05-27T06:46:51Z
dc.title.none.fl_str_mv Monetary integration and the cost of borrowing
title Monetary integration and the cost of borrowing
spellingShingle Monetary integration and the cost of borrowing
Gómez-Puig, Marta
Unions monetàries
Liquiditat (Economia)
Risc (Economia)
Mercat monetari
Deute
Monetary unions
Liquidity (Economics)
Risk
Money market
Debt
title_short Monetary integration and the cost of borrowing
title_full Monetary integration and the cost of borrowing
title_fullStr Monetary integration and the cost of borrowing
title_full_unstemmed Monetary integration and the cost of borrowing
title_sort Monetary integration and the cost of borrowing
dc.creator.none.fl_str_mv Gómez-Puig, Marta
author Gómez-Puig, Marta
author_facet Gómez-Puig, Marta
author_role author
dc.subject.none.fl_str_mv Unions monetàries
Liquiditat (Economia)
Risc (Economia)
Mercat monetari
Deute
Monetary unions
Liquidity (Economics)
Risk
Money market
Debt
topic Unions monetàries
Liquiditat (Economia)
Risc (Economia)
Mercat monetari
Deute
Monetary unions
Liquidity (Economics)
Risk
Money market
Debt
description With European Monetary Union (EMU), there was an increase in the adjusted spreads of euro-area sovereign securities over Germany (corrected from the foreign exchange risk), causing a lower than expected fall in borrowing costs. The objective of this paper is to study the reasons for this increase, and in particular, whether the change in the price assigned by markets was due to domestic factors (credit risk and/or market liquidity) or to international risk factors. The empirical evidence suggests that it may have been a change in the market assessment of domestic (both liquidity and default risk) rather than international factors that caused the observed increase in adjusted spreads with Monetary Integration, even though, since market size scale economies have increased since EMU, their effect differs according to the size of the market.
publishDate 2008
dc.date.none.fl_str_mv 2008
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/107186
url https://hdl.handle.net/2445/107186
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://doi.org/10.1016/j.jimonfin.2008.01.008
Journal of International Money and Finance, 2008, vol. 27, num. 3, p. 455-479
https://doi.org/10.1016/j.jimonfin.2008.01.008
dc.rights.none.fl_str_mv (c) Elsevier Ltd, 2008
info:eu-repo/semantics/openAccess
rights_invalid_str_mv (c) Elsevier Ltd, 2008
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier Ltd
publisher.none.fl_str_mv Elsevier Ltd
dc.source.none.fl_str_mv Articles publicats en revistes (Economia)
reponame:Dipòsit Digital de la UB
instname:Universidad de Barcelona
instname_str Universidad de Barcelona
reponame_str Dipòsit Digital de la UB
collection Dipòsit Digital de la UB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.301603

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