Luis M Linde: The role of central banks in present times. Monetary and exchange rate policies in the Mediterranean countries

Speech by Mr Luis M Linde, Governor of the Bank of Spain, at the first session "The role of Central Banks in present times. Monetary and exchange rate policies in the Mediterranean countries", of the Conference "The Mediterranean econonomies in a changing world", organised by the Instituto Europeo del Mediterráneo (IEMED), Barcelona, 24 February 2017.

In this first session of the Conference, we will address the implications of the present situation of the global economy for central banks and, more specifically, how should central banks in the Mediterranean region manage their monetary and exchange rate policies in the present context.

Before giving the floor to our distinguished speakers let me say a few words about the global economic policy environment and the implications for monetary and exchange rate policies. The latest data tend to confirm that the global recovery is firming, including in core advanced economies, even if the rates of growth continue to be rather modest. Inflation is also coming back