European Financial Systems in the Global Economy

European Financial Systems in the Global Economy......Page 3
Contents......Page 7
About the Author......Page 9
1 Introduction......Page 11
2 European Financial Markets in History......Page 15
3.1 Financial systems, markets and intermediaries......Page 25
3.2 Financial market typology......Page 34
3.2.1 Non-tradables and non-transferables......Page 35
3.2.2 Securities......Page 38
3.2.3 Derivatives......Page 47
3.3 Financial systems in Europe......Page 56
3.3.1 Bank-based systems......Page 59
3.3.2 Market-based systems......Page 62
3.3.3 Financial systems in Eastern Europe......Page 65
3.4 External markets......Page 73
3.4.1 Euromarkets......Page 74
3.4.2 Offshore centres......Page 79
3.4.3 Virtual market places......Page 82
4.1 Banks......Page 89
4.2 Exchanges......Page 93
4.3 Venture capital......Page 102
4.4 Payment, clearing and settlement systems......Page 106
5.1.1 Diversifying risks......Page 125
5.1.2 Matching positions......Page 131
5.1.3 Exploiting price differences......Page 133
5.2.1 Nominal comparisons......Page 134
5.2.2 The role of prices......Page 135
5.2.3 Risk premia and spreads......Page 137
5.2.4 The formation of expectations......Page 140
5.3 Price patterns......Page 144
6.1.1 Stability......Page 157
6.1.2 Finance and growth......Page 165
6.2.1 Limits to sovereignty......Page 178
6.2.2 Financial supervision......Page 183
6.2.3 Monetary policy cooperation......Page 190
6.3 EMU and financial integration......Page 203
7 Conclusions......Page 217
Appendix A Bill of Exchange as Medieval Credit Instrument......Page 219
Appendix B The Tobin Tax......Page 221
Appendix C CFA Franc Zone......Page 227
Appendix D Rating Agencies......Page 229
Appendix E Optimum Currency Area......Page 233
Appendix F Luxembourg......Page 235
Appendix G Nonlinearities......Page 239
Appendix H Value at Risk......Page 243
Appendix I Legend to the FESE Diagram of the European Exchanges......Page 247
References......Page 249
Index......Page 257