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


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