European Central Bank vice president Constancio speaking in HK

  • Says diverging monetary policy between US and Eurozone could have greater global repercussions that in the past
  • Sees euro area spillovers smaller than those of US
  • Sees risk of durable fragmentation of system

  • With huge us dollar debt being created around the world without liquidity backstops, we are still far from having a global lender of last resort adequate for our times

  • Sees monetary, financial system at 'a sort of crossroads'

Headlines via Reuters and Bloomberg

more to come

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The topic of his speech is 'Diverging monetary policies, global capital flows and financial stability' ... so it looks like he is on topic!