Interest rate differentials are already generating capital flows into economies with higher  1  See, for instance, Jean-Claude Trichet, “The ECB’s exit strategy”, Frankfurt, 4 September 2009; José Manuel González-Páramo, “Non-standard monetary policy: five questions about the exit”, London, 6 November 2009; Jürgen Stark, “Monetary policy before, during and after the crisis”, Tübingen, 9 November 2009. 2  “An ocean apart?
Comparing transatlantic responses to the financial crisis”, Rome, Banca d’Italia, 10-11 September 2009. BIS Review 150/2009  1  yields. Such inflows complicate monetary policy management, requiring difficult choices for authorities”.