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.
1/2  BIS - Central bankers' speeches  It is fair to note that the tightening of monetary policy globally, both the extent and pace, has been unprecedented. Without doubt, the ECB's rate increases are being transmitted forcefully to euro area financing and monetary conditions. However, the lags and the strength of transmission to the real economy remain uncertain.