Also, the emergence of the euro as a successful global currency, with the payments infrastructure, unified monetary policy, and converging fiscal policies that are associated with it, creates an attractive, large market. This is a market that US firms have found, and will continue to find, hospitable and in which European cross-border mergers will, no doubt, continue.
Obviously the whole phenomenon of financial liberalization is very multi-faceted, ranging from integration of offshore and onshore currency markets to development of China’s own capital markets and to issues of international finance. All of these areas are important, and they are also potential sources of financial instability, if things do not go as well as is now planned.