[3] Although the global impact of ECB is not the main focus of today’s speech, the monetary expansion by a major central bank is typically simulative for the rest of the world. [4] Recent academic research has also explored the interconnections between international portfolio allocations and optimal monetary policy. It is beyond the scope of this speech to review this literature.
[5] I previously studied the impact of monetary policy shocks on the current account in Lane, P. R. (2001), "Money Shocks and the Current Account," in G. Calvo, R. Dornbusch and M. Obstfeld (eds.) Money, Factor Mobility and Trade: Essays in Honor of Robert Mundell, MIT Press, pp. 385-411.