There certainly were international forces at work, but the key one was the expansionary effect of the rise in the terms of trade. It is perhaps worth spending a few minutes on the basic analytics of this issue.
3 Whereas an indicator for the degree of integration of a European financial market could build on the law of one price, a possible indicator for the degree of development of the financial system could be the size of a market. Let me take as an example the size of an economy’s capital markets.