Whether they succeed will reveal the scope of monetary autonomy in a globalised world. What will the outcome be? For smaller and emerging market economies, the constraints on policy may remain significant. But I expect this episode to confirm that globalisation cannot constrain monetary policy in large economies, like the euro area.
How globalisation affects both inflation and financing conditions in the euro area depends on our policy response to it. If globalisation leads to below-target inflation, it is because we are tolerating that undershooting. The euro area has monetary autonomy – the only question is how to use it wisely.