European Monetary Integration: reading list for topic 4
Financial Integration

1. The "home bias" literature:

In consumption risk-sharing

• Lewis, Karen (1996) "What can explain the apparent lack of international consumption risk-sharing?", Journal of political Economy, 104, pp.267-297
  

In saving/investment

• Feldstein, M and C. Horioka (1980) "Domestic Saving and International capital Flows", Economic Journal, 90, pp. 314-329

2. Estimates of the benefits of consumption-risk sharing in financially integrated areas

• Asdrubali,P., Sorenson, P.E. and O.Yosha (1996) "Channels of interstate risk-sharing: United States, 1963-90", Quarterly Journal of Economics, 111, pp.1081-1110.
• Hess, G.D and K.Shin (1998) "Intranational business cycles in the United States", Journal of International Economics, 44, pp. 289-313.
  
• Kalemli-Ozcan, S., Sorensen, B.E. and O.Yosha (2001) "Economic Integration, Industrial Specialization and the Asymmetry of Macroeconomic Fluctuations", Journal of International Economics, 55, pp.107-137.
  
• Sorenson, B.E. and O.Yosha (1998) "International Risk-sharing and European Monetary Unification", Journal of International Economics, 45, pp.211-238.
  
• Del Negro, M. (2002) "Asymmetric shocks among US States", Journal of International Economics, 56, pp.273-297.

3. Financial Integration and Monetary Union

• Mundell, R.A. (1973) " Uncommon Arguments for Common Currencies"in (eds.) Johnson, H.G. and A. Swoboda: The Economics of Common Currencies, Allen and Unwin.
  
• Blanchard, O and F.Giavazzi (2002) "Current Account deficits in the Euro Area: The end of the Feldstein-Horioka Puzzle?", MIT Economics Department Working Paper 03-05. (reprinted in the Brookings Papers in Economic Activity)

4. Specific markets

• Peree, E. and F. Steinherr (2001) " The Euro and capital markets: a new era", The World Economy.
  
• European Commission (2001): Report of the Committee of Wise Men on the Regulation of European Securities Markets (Lamfalussy report)
  
• European Central Bank (2001) The Euro Bond Market, Occasional Papers, July.

• Carletti E. and P. Hartmann (2003), “Competition and stability: what’s special about banking?”,  in P. Mizen (ed.), Monetary History, Exchange Rates and Financial Markets, vol. 2, Edward Elgar, Cheltenham.
  
  
• Hasan H., A. Lozano-Vivas and J.T. Pastor (2000), “Cross border performance in european banking”, Bank of Finland Dicussion Paper no. 24.
  
  
• Danthine J.P., F. Giavazzi and E.L. von Thadden (2000), “European financial markets after EMU – a first assessment”, CEPR DP no, 2413.