Are New and Old EU Members Becoming More Financially Integrated A Essay

Are New and Old EU Members Becoming More Financially Integrated A Threshold Cointegration Analysis - Essay Example 1999; Fratzschner, 2001etc).This approach mainly uses the uncovered interest parity2 condition. The main limitation with this approach is that if data on financial instruments with similar characteristics are not available, then the interpretation of results based on the price or approach can be problematic. It is very difficult to get financial instruments of exactly similar characteristics in reality. Further, there is an argument that interest rate convergence need not necessarily occur in financially integrated markets. This is because of the possibility of similar response of the markets to common factors even under non-convergence of interest rates also (Poghoshyan and Hann, 2007). The second approach is based on the cross border flows of capital. This approach estimates quantitatively the various legal and other barriers, which may affect financial integration through different angles of the decision process regarding investment (Bekaert and Harvey,1995;Adam etal, 2002; Baele etal, 2004 etc). However, cross border capital flows need not always be indicators of financial integration only. It can be due to many other policies like monetary, fiscal, exchange rate policies and other circumstances (Eichengreen, 2003).In addition to this, according to European Commission (1997), the harmonization and coordination of various legal procedures for capital markets have become less important for their integration after the introduction of Euro. However, this is not the case for other financial markets according to the Commission. The third approach is based on the news-based indicators (Baele etal, 2004; Capiello etal, 2006). According to this, under integrated financial markets, the prices of financial instruments will be affected more by the global news than the local news. This is because there will be well diversification of portfolios in the financially

Analyse and discuss concepts of European identity Essay

Analyse and discuss concepts of European identity - Essay Example Considering as a dependent variable, identity is repeatedly used to study the creation of racial or territorial identities. It is argued that Central Europeans formed a separate identity that was mainly defined in opposition to Russia and likeness to Western Europe. As an independent variable the study of identity uses to explain some facts of greater concern, for instance the nature of political rivalry. After the World War II those who wished of a united Europe were searching ways to uphold a strong sense of European identity. Even though, thoughts on a European identity conceptualized ten years earlier to the World War II the political, social, and economic disorders linked with World War II, basically changed the European order. Hence it became necessary to assume of Europe in different ways. The formation of the European Coal and Steel Community, and the European Economic Community (EEC), were the outcome of those views (Williams, 1987). As the hurdles to trade within the EEC began to drop in 1960s, that resulted in the start of discussion of a sprouting United States of Europe. This was not only just a formal economic entity but it was presumed as a possible hub of identity for its inhabitants. The discussion over the nature and significance of European identity goes deep into many of the critical matters facing Europe today (Deflem and Pampel,1996; Delanty, 1995; Hodgson, 1993). Making the debate difficult are the suppositions that are made about the very nature of identity itself. These assumptions are the creation of political-territorial growth over the past centuries that have cast the state in the role of architect and symbol of international society (Murphy, 1996; Taylor, 1994). Hence, the concepts of nation and state became conflated and national identities to be considered as if they were the major matter of investigation in learning’s of