Hartmann, Philipp; Grüner, Hans Peter; Fecht, Falko - Deutsche Bundesbank - 2007
This paper compares four forms of inter-regional financial risk sharing: (i) segmentation, (ii) integration trough the … secured interbank market, (iii) integration trough the unsecured interbank market, (iv) integration of retail markets. The … preferable. Even though this deeper financial integration entails the risk of contagion it may be beneficial for large economic …