ECB's Draghi: Monetary policy has inevitably created destabilizing spillovers - opening comments from ECB forum in Sintra, Portugal
- Depressing global inflation has been the slump in demand for energy and commodities linked to the slowdown in emerging markets
- Unconventional tools showes that easy monetary policy is possible at low interest rates
- Divergent monetary policies among major central banks can create uncertainty about future policy intentions, which in turn leads to higher exchange rate volatility and risk premiums
- Global economy could benefit from global policy coordination