In my remarks I will touch on some of these general challenges for the global outlook, before discussing specific issues for the euro area. The global challenges The spillover effects of monetary normalisation in the US At the global level, perhaps the issue that has received the greatest focus in recent months has been the implications of prospective US monetary normalisation.
The announcement by the US about tapering about a year ago prompted sharp currency falls and asset price declines in several emerging markets. Further bouts of market volatility have been observed since then, including in January and February this year. The episode has renewed debate about the spillover effects of monetary policies in advanced economies.