ASB 4403 International Financial Markets
How small economies crisis influence the
whole European Union Financial market
Professor: Owain ap Gwilym
Submission data: 08th December 2014
Word count: 1944
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Table of Contents
Introduction………………………………………………………………………………………………………. 3
International financial markets analysis………………………………………………………………….5
Bond Market …………………………………………………………………………………………………...6
Money Market………………………………………………………………………………………..….…….6
Recommendations ………………………………………………………………………………………………8
Conclusion ……………………………………………………………………………………………….…….….8
References…………………………………………………………………………………..…….….…….….….9
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Introduction
The continually growing economic integration of international financial markets
has become strikingly important in recent years. The massive growth of
technology and the increasing flow of asset between countries are among the main
reasons that dedicates to this conspicuous globalization. Thus, to understand the
origin and the extent of linkages amongst different financial markets in distinctive
countries is crucial.
According to Kim and Moshirian(2005:2476), the formation of the third stage of
the European Monetary Union (EMU) in January 1999 based on the Maastricht
Treaty changed the structure of the European bond market fundamentally.
Exchange rates among member countries were unavoidable fixed, and the Euro
was introduced as the new single currency. In recent study, Geyer et al (2004:172)
argued that with the commencement of the EMU, the most important reason for
