77 Pages Posted: 23 Apr 2003
Date Written: January 2003
In the last two decades the European financial markets have become more market oriented. We analyze the economic and political forces that have triggered these changes as well as their likely welfare implications. We also try to assess whether this trend will continue. Based on our analysis, we conjecture that even if Europe might benefit from a continuation of the trend, in the near future political support for it is likely to become much weaker. Furthermore, without serious reforms the trend is likely to benefit Southern Europe less than Northern Europe.
Suggested Citation: Suggested Citation
Rajan, Raghuram G. and Zingales, Luigi, Banks and Markets: The Changing Character of European Finance (January 2003). CRSP Working Paper No. 546. Available at SSRN: https://ssrn.com/abstract=389100 or http://dx.doi.org/10.2139/ssrn.389100