Even more than that, we observe a reversal of flows with capital going to core countries and away from the periphery. One example of very quick initial integration was the euro area money market which nevertheless has shown recently a much higher dispersion of rates, reduced cross border volumes with a virtual stop to peripheral countries.
Chart 2 illustrates how quickly and profoundly interest rates in the short-term money market converged after 1999 and how the dispersion exploded following the crisis.