The Euro deposit market in a global perspective

This paper examines whether causal relationships between Euro money markets in Germany and three other international money markets are different from causal relationships that existed amongst the German Mark in international money markets prior to the introduction of the Euro. It investigates connections between interest rate yields on Euro-denominated assets by analyzing the magnitude and direction of causal relationships across geographic markets. Anticipated similarities in behavior between the Euro and the German Mark are not confirmed, but the short period of existence for the Euro may not allow accurate determination of long run relationships.