Unless otherwise defined, this refers to the correlation of share price developments between the euro area on the one hand and the U.S. on the other. Sometimes, in addition to the euro area, Switzerland and the United Kingdom are also included in the analysis. The values have converged steadily since 1994, mainly due to the fact that: – cross-border capital flows have increased sharply and many companies have been listed on stock exchanges in both America and Europe; – institutions have become more international (e.g. ABN Amro, Barclays, etc.): ABN Amro, Barclays Bank, BNP Paribas, Citigroup, UBS in the case of banks, and Allianz, Axa, American International, Generali, SCOR or Swiss Re in the case of insurance companies) as well as – in the course of this, portfolios across the Atlantic became strongly mixed. As a result, business cycles also largely run in tandem; but even disruptions such as the subprime crisis jump from one space to another immediately (immediately jump across the world). – See equity funds, equity market, cyclicality. – Cf. ECB Monthly Bulletin, February 2008, pp. 42 ff. (transmission channels; overviews).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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