Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of San Francisco
Working Paper Series
Monetary and financial integration: evidence from Portuguese borrowing patterns
Mark M. Spiegel

This paper examines the impact of European Monetary Union (EMU) accession on bilateral Portuguese international borrowing patterns. Using a difference-in-differences methodology, I demonstrate that Portugal’s accession to the EMU was accompanied by a change in its borrowing pattern in favor of borrowing from its EMU partner nations. This extends the evidence in the literature that overall international borrowing is facilitated by the creation of a monetary union, and raises the issue of financial diversion. The results are shown to survive a wide variety of robustness checks and are corroborated by preliminary evidence concerning Greece’s accession to EMU in 2001.

Download Full text
Cite this item
Mark M. Spiegel, Monetary and financial integration: evidence from Portuguese borrowing patterns, Federal Reserve Bank of San Francisco, Working Paper Series 2004-07, 2004.
More from this series
JEL Classification:
Subject headings:
Keywords: Monetary unions - European Union countries ; Banks and banking; International ; International finance
For corrections, contact Noah Pollaczek ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal