I refer to my earlier discussion of the conceptual elements of our framework for assessing financial integration, where I stated that the law of one price – one obvious measure of financial integration – holds for assets with identical risks and returns characteristics to be priced identically regardless of where they are transacted.
But challenges remain beyond today’s institutional framework to safeguard the own life of a currency union within a common market to further proceed. In the medium to long run, we will need an institution that is solely responsible for the euro zone.