states has altered this situation dramatically. the euro has eliminated exchange risk as a source of fragmentation in the eu financial system. it has also increased price transparency, stimulating competition. as a result, deeper integration has led to more homogeneous markets, a wave of consolidation among intermediaries and exchanges, and the emergence of new and innovative products and techniques. the introduction of a common currency – the euro - - has perhaps had its biggest impact on the unsecured money market, that is the interbank deposit market. there is now virtually full convergence in interest rates across the euro area with little or no differences in the rates wherever the funds are exchanged. this outcome is, to a significant extent, a consequence of monetary union as all the regional money markets existing before emu formed a large euro area money market. the ability to move funds across the euro area enabled the emergence of a deep, liquid and homogeneous money market. despite recent progress, however, the eu financial system remains fragmented. member - state financial structures have evolved over time under the influence of specific national preferences with regard to legal and regulatory frameworks. for example, progress in integrating the secured money market, that is, the market in which money is exchanged for collateral and repos, or repurchase transactions, and which includes the markets for t - bills and cds, has been hampered by differences in national rules about collateral, settlement and matters concerning the handling of insolvency. nonetheless, a large increase in gross issues in euros by monetary financing institutions, non - monetary financial corporations and nonfinancial corporations has occurred ( see figures 1 - 3 ). whilst the levels of monthly issues differ across groups ( reflecting the fairly recent recourse by nonfinancial corporations in europe to short - term securities markets in contrast to banks ’ use of the cd market to raise funds ), there is no doubt that the advent of the euro has contributed to a marked change. bond markets, both government and corporate, remain even less integrated. in the former case, yields have converged significantly, with remaining differences reflecting either credit risk or liquidity risk. in particular, smaller countries often have difficulties in generating deep markets across the whole maturity spectrum. one solution that has been proposed is greater coordination of debt issues. this proposal, however, has met with some resistance, not least because national debt issuance is affected strongly by national - specific fiscal characteristics. with regard to markets for corporate debt, the lack of integration reflects the fact that euro

. however, these technologies have truly changed the way businesses operate, and i believe that they will continue to do so in the future. the progress that is occurring today may not seem as revolutionary as it did five or six years ago. nonetheless, the ongoing evolution of these technologies is continuing to generate productivity gains. we all have a natural tendency to look for the next " killer application " that will once again revolutionize the high - tech marketplace. this is the high - tech equivalent of " waiting for godot, " and we should not ignore the many, smaller changes to business practices that are continuing to yield real efficiency gains. when will the high - tech sector recover? i can't give you an exact time or date, but i will assert that its economic prospects still seem positive over the long run. the capital overhang - - especially in the telecommunications industry - - obviously must be eliminated before any meaningful expansion can occur, and some additional consolidation may be necessary if businesses are to be profitable in the long run. but i, like many other observers, think such change is occurring and is likely to bear fruit in the years to come. conclusion to sum up, none of us, obviously, can see the future, and instead we shall have to monitor incoming data closely for evidence of any shifts in recent productivity trends. nonetheless, i remain cautiously optimistic that the u. s. economy can continue to enjoy strong productivity - led growth that will raise living standards in the years to come. i believe this based on analyses at the firm, the industry, and the macroeconomic levels. the unbelievable stories of high - tech revolution were proven to be just that, unbelievable. but the more moderate and credible explanations remain.