ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book describes some key economic and financial features of the euro area and sets them into a broader perspective by making a comparison with the US and Japan. It deals with one of the most complex facets of the process of European financial integration: the removal of obstacles to the optimal exploitation of the economies of scale and scope that such integration would render possible. The book examines the developments of the financial structures in the euro area over the 1995 to 2002 period and compare them with the financial structures of the US and Japan. It explores the main provisions to secure the independence of the central banks, their accountability and transparency, and last their monetary policy strategy and implementation. The book explains the main reasons for the interest of central banks in financial markets.
