markets will not be unified by the introduction of the euro. National central banks have a vested interest in preserving local … expressed in euro imperfect substitutes across borders. Prudential control will also continue to be handled differently from … country to country. In the long run these national idiosyncracies cannot survive competitive pressures in the euro area. The …

innovations to 10 economic sectors within the euro area, the United States, and the United Kingdom. We use daily data from January …