The Effect of Monetary Policy on Financial Integration in the Eurozone
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2024-07-05
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en
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This paper analyses the effect of monetary policy on financial integration by looking at the policy rates set by the European Central Bank. Observations of policymakers and existing literature hint towards a negative effect of policy rates on financial integration. However, conducting a time series analyses between 2002 and 2023 on the eurozone, this thesis finds a surprising positive effect. Apart from this result, robust evidence is found for a weaker effect of policy rates on financial integration at higher levels of financial integration. Therefore, this thesis shows an interesting interaction between policy rates and financial integration on which society and the academic world can build upon.
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Faculteit der Managementwetenschappen