in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because … these banks rely on wholesale dollar funding, while raising more of their euro funding through insured retail deposits, the … dollar funding, there were significant violations of euro-dollar CIP. Moreover, dollar lending by Eurozone banks fell …

, euro area and UK data points to a substantial deviation from that invariance prediction: expectations of interest rate …

six Euro-area countries over the period 2004-2011. As a first step, the supposed non stationarity of the two series is …