The first is that the internationalisation of the RMB and the associated liberalisation of the Chinese capital account have significant implications for the global financial system. Indeed, it is likely that the internationalisation of the RMB will be one of the biggest forces shaping the global financial system over the next decade or so.
However, there are compelling reasons to suggest that inflation in the euro area will go up only gradually. They include a legacy of private and public debt that was too high, which led to a fall in economic activity and an increase in unemployment. More recently, global developments which are having a negative impact on inflation have added to this.