BRUSSELS (dpa-AFX) - The global economy can benefit from alignment of monetary policies by central banks around the world, European Central Bank President Mario Draghi said Tuesday.
Monetary policy has inevitably created destabilizing spillovers as well, he said at the ECB Forum on Central Banking. But this is not so much a result of the measures central banks have employed, but rather of the intensity with which they have had to be used.
'The global economy could also benefit from cooperation among spillover-initiating and spillover-receiving economies on how to mitigate unwanted side effects,' Draghi added.
Further, he observed that the international dimension of monetary policy is becoming more pertinent.
He noted that common interest today is a faster closing of the global output gap, more stable global inflation, higher long-term global growth and greater global financial stability.
Such an improved policy mix would help reduce unwanted side effects of monetary policy, since the burden of stabilization would be better shared across policies, Draghi added.
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