Moreover, more integrated financial markets give rise to greater competition, resulting in more favourable financing conditions for consumers and firms.
To provide you with some figures, in the United States, over the period 1963-90, capital markets smoothed out 39% of the shocks to gross state product (the equivalent to GDP), the credit channel smoothed out 23% and the federal government, through the fiscal channel, 13%. Around 25% of the shocks were not smoothed out.