Building the financial foundations of the Euro : experiences and challenges

The introduction of the euro as a common currency and the establishment of the Economic and Monetary Union (EMU) have in a very short time changed the financial landscape of Europe. Major restrictions on financial flows across the borders of the European Union's Member States have been abolished and the European Union is now gradually being transformed into one huge common financial market. This ongoing process is having far-reaching consequences. The financial transformation of Europe raises issues concerning financial stability and fragility, financial supervision, risk-sharing across capital markets, the transmission mechanism of monetary policy, and the character and speed of the adjustment process in the euro area - to name just a few. These issues are examined in depth in the contributions to this volume, prepared by leading international experts in this rapidly changing field.