The same sort of effect on inflationary expectations was visible in financial markets. As Figure 2 shows, in early 1986 the yield on New Zealand government New Zealand dollar 10 year bonds was roughly 1000 basis points above the yield on US Treasuries. By early 1990, that margin had contracted to about 400 basis points.
The process of integration has enabled Europe to enjoy more than half a century of peace, prosperity and stability. Were we to begin regressing, we would place this stability in jeopardy. From an economic perspective, the rationale for pursuing integration is far stronger today than it was in the immediate aftermath of the war.