International Financial Integration

theory.- 2.7 Swedish industrial groups with a turnover exceeding SEK 1 billion in 1981.- 3 Results and Findings from Earlier Studies of Financial Integration.- 3.1 Introduction.- 3.2 Studies of the interest-sensitivity of capital flows.- 3.3 Equal expected returns as an indicator of direct financial integration.- 3.4 Observations from the literature - a summary.- 3.1 Adjusting portfolios in an open economy.- 4 Characteristic Features of the Financial Market in a Small Open Economy - the Case of Sweden.- 4.1 Introduction.- 4.2 Actors on the Swedish financial market.- 4.3 Rates of interest and administrative control mechanisms.- 4.4 Swedish exchange controls and their effect on segmentation.- 4.5 The Swedish krona - historical exchange rate patterns and the formation of expectations on the market.- 4.6 Specific measurement problems.- 4.1 Date of abolition of monetary policy regulations, 1978-85.- 4.2 Exchange rate index.- 4.3 Standard deviations in the forward and spot rates.- 4.4 Foreign exchange flows 1974-84.- 4.5 Current account reporting according to SCB.- 5 Fluctuations in Swedish Interest Rates - Historical Patterns.- 5.1 Introduction.- 5.2 Nominal and real Swedish interest rates 1974-84.- 5.3 Correlation between successive quotations of Swedish interest rates.- 5.4 The interest rate pattern and direct financial integration.- 6 Swedish Interest Rate Fluctuations in an International Perspective.- 6.1 Introduction.- 6.2 How Swedish nominal interest rates deviate from foreign interest rates.- 6.3 Deviations of Swedish real interest rates from foreignreal interest rates.- 6.4 What does this initial comparison suggest about financial integration?.- 7 Swedish Interest Rate Dependence: A Correlation Analysis.- 7.1 Introduction.- 7.2 Covariation between Swedish and foreign real interest rates.- 7.3 Covariation between the Swedish nominal interest rate and the foreign rate.- 7.4 Covariation between the Swedish interest rate and the forward-covered foreign interest rate.- 7.5 The correlation analysis and direct financial integration.- 8 A Model-Based Analysis of Direct Financial Integration.- 8.1 Introduction.- 8.2 Analysis of deviations from the International Fisher Effect.- 8.3 Analysis of deviations from interest rate parity.- 8.4 The forward rate as an unbiased estimate of the future exchange rate.- 8.5 Presentation of the model.- 8.6 Analysis of the gap between Swedish and foreign discount rates.- 8.7 Analysis of the gap between Swedish and foreign interest rates on treasury discount notes.- 8.8 Analysis of the gap between Swedish and foreign prime rates.- 8.9 Analysis of the gap between the Swedish interest rate on government bonds/government notes and the corresponding foreign rate.- 8.10 Analysis of the gap between Swedish and foreign interest rates on industrial bonds.- 9 Interest Rate Autonomy and the Foreign Dependence of the Swedish Financial Market - A Summary.- Supplement 1 Mean and standard deviation in the international interest rates 1974-84.- Supplement 2 List of variables and abbreviations.