Professor Anne-Laure Delatte, CNRS EconomiX, OFCE and CEPR
Will present the paper:
“Euro area and the rest of the world: A Tale of two international banking integrations”
Abstract: We propose an original measure of international banking integration based on gravity equations and a spline function on a panel of 14 countries and their 186 partners between 1999 and 2012. Contrary to the conventional wisdom, we uncover that: 1) the international banking integration outside the euro-area has strengthened since the financial crisis. 2) In contrast, the previously documented financial fragmentation inside the euro-area is one side of an ongoing isolation vis-a-vis the rest of the world: euro area banks have reduced their international exposure inside and outside the euro area to a similar extent. 3) This decline is not a correction of previous overshooting but a marked disintegration.
5th June 2015 at 12:00
Room: To be confirmed
79 avenue de la République 75011 Paris
Organizers: Prof. Gunther Capelle-Blancard (Université Paris I Panthéon-Sorbonne, Labex ReFi), Prof. Christophe Moussu (ESCP Europe, Labex ReFi), Arthur Petit-Romec (ESCP Europe, Labex ReFi)