What started off more than a year ago as an East Asian crisis gradually extended to other emerging market countries and eventually also affected a number of smaller well-developed economies. The most recent extension was an infliction on the financial systems of some of the industrial countries, such as the United States of America.
Our indicators measure the financial integration of the euro money market based on the dispersion of lending rates for actual transactions or rates offered by EONIA, EURIBOR and EUREPO panel banks.6 The unsecured interbank deposit market was almost perfectly integrated right at the start of the Monetary Union.