Literally, by rightly recognizing shipbuilding as their strategic industry and subsidizing it for centuries, they became one of the most prominent shipbuilders of their time. And metaphorically, they were indeed navigating well their economic development and maintained their independence amidst limited natural resources and practically no military power, and surrounded by hostilities from all sides (the Ottomans, Venice). They achieved that through resilience, adaptability and cooperation. In medieval Europe trade interruptions were frequent so the government of Dubrovnik tried to contain risks from food shortages by maintaining large reserves of grain and other commodities. Furthermore, they were the global frontrunners in implementing disease prevention measures, including setting up the world's first quarantine station, which was located right on the site of our concert last night. Finally, they realized that wise government policies in the field of public education, health and social welfare were instrumental in preventing social unrest in the context of frequent external shocks. At the same time, historical evidence suggests that Ragusa practiced a very prudent policy with respect to  3/4  BIS - Central bankers' speeches  state finances, minting of currency, and market-encouraging regulations. As for cooperation, despite hostile surroundings, Dubrovnik's military expenditures were minimal, as they instead were focusing on diplomatic efforts and negotiating skills. A historian Berkovi documented that "Dubrovnik entered into numerous international political and trade relations [and was] able to utilize [this] wisely and skilfully in the defense of [its] independence, sovereignty and economic growth".

1.1 Naturally, it is on the euro money market that the highest degree of integration can be found, as a result of the unification of monetary policy, and thanks to the efficiency of the cross-country largevalue payment system that support it, i.e. the TARGET system. Interest rates differentials between what are nowadays regional deposit markets have quickly vanished following the advent of the euro and the “law of one price” applies to the transactions conducted within a deep and highly liquid euroarea wide market. The recognition granted to money market reference rates such as EONIA and Euribor, the sheer development of derivatives markets based on these references - the OIS-based swap market and Euribor futures and options contracts, the impressive increase in cross-border transactions are illustrations of this already well-advanced, if not already completed unification. On the inter-bank market, cross-border transactions conducted with EU counterparties represent more than 50% of the whole inter-bank euro deposit business. Similar developments are recorded in the  BIS Review 32/2003  1  repo market: the increasing share of non-domestic euro area collateral in transactions combined with the growing use of tri-party agreements, as well as the share of cross-border transactions - which is more than 50% - provide clear evidences of an increasingly integrated market. 1.2 Changes have also been impressive, albeit more contrasted, on the securities markets. The euro had clearly stimulated the rapid development of the corporate bond markets.