Business

Archaeology

Stock (firearms)

Financial economics

Stock market bubble

Bubble

Parallel computing

Econometrics

Economics

Geography

Economic bubble

Context (archaeology)

Stock market

Computer science

Monetary economics

IMF Working Paper

The degree of comovement across national stock markets has increased dramatically since the mid-1990s.This has overturned a stylized fact in the international portfolio diversification literature that diversifying across countries is more effective for risk reduction than diversifying across industries.We investigate if this rise in comovement is a permanent phenomenon driven by greater economic and financial integration.or a temporary effect associated with the recent stock market bubble.At the global level.our results point to the bubble.At a regional level, we find evidence of a significant rise in market integration within Europe, possibly a reflection of institutional changes such as the EMU.

The Rise in Comovement Across National Stock Markets: Market Integration or Global Bubble?