International Lending and Debt Problems

Do European Capital Flows Comove?

JEL codes: 
F32, F34, F36
Version Date: 
Feb 2009

We study the cross-section correlations of net, total, and disaggregated capital flows for the major source and recipient European Union countries. We seek evidence of changes in these correlations since the introduction of the euro to understand whether the European Union can be considered a unique entity with regard to its international capital flows.

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