In contrast, international financial flows to and from emerging economies have increased in importance, which is reinforced by the expanding share of emerging economies in global GDP. Foreign direct investment (FDI) positions have continued to expand, in contrast to the portfolio equity, portfolio debt and non-portfolio debt categories.
Draghi: First, the stability of the financial system is at risk if interest rates are too low for too long. Until now, however, we have only seen significant price increases in some specific and limited markets, for example, in some real estate markets in Europe. The second serious risk is that inflation, which is already clearly below our 2% target, might fall further.