I will argue that with regard to the first two more general aspects the globalisation process does not fundamentally call into question the ability of an independent central bank to guarantee price stability over the medium-term. Thus, globalisation by no means reduces the need for a stability-oriented domestic monetary policy.
So, I found it particularly interesting when, yesterday, Professor Obstfeld drew our attention to the importance of global factors in determining real rates. In his recent work, Professor Obstfeld has also pointed to a risk that central banks may collectively go too far, as their restrictive policies would reinforce each other.