The Euro Area Financial Integration Process And Impact

Since 2002, the euro has been fully implemented, the entire euro area financial system in a unified European Central Bank to operate under the management of monetary policy. In order to effectively regulate the entire euro zone, European Central Bank actively promoting the region's financial integration. So, what kind of impact of financial integration, monetary policy is it This is a hot issue, but also the European Central Bank has been engaged in research work. From their research work and implementation of policy, mainly focused on how to promote financial integration, monetary policy effectiveness. This also constitutes its main strategy to promote financial integration, namely the positive development of capital markets, promote the integration of banking markets. In this paper, financial integration, interest rates on euro‐zone monetary policy transmission, transfer of credit, asset price transmission analysis, obtained financial integration affect the euro area monetary policy transmission mechanism. Mainly, financial integration, monetary policy transmission in the euro zone specific areas, specific for the integration of the euro area financial markets, the euro area financial structure to promote and to present the new features. The euro‐zone monetary policy is on this premise. This form of financial integration on the impact of the euro area monetary policy transmission main content. In this paper, this particular process was demonstrated and studied. Study found that financial integration promotes convergence and integration of financial markets, the euro zone monetary policy transmission smooth channels, improve the efficiency of monetary policy. At the same time to make the euro area financial structure of financial integration presents new features, changes in the relative transmission of monetary policy, while also improving the efficiency of monetary policy transmission. Through the integration of the euro area financial transmission of monetary policy, we can get a concrete experience, the regional financial and monetary policy in China makes sense.