John Iannis Mourmouras: The risks and prospects for the global economy and capital markets in 2017

Keynote address by Professor John Iannis Mourmouras, Deputy Governor of the Bank of Greece, at the AMUNDI - OMFIF Asset and Risk Management Seminar nd Risk Management Seminar "Τhe risks and prospects for the global economy and capital markets in 2017", London, 24 January 2017.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Views expressed in this speech are personal views and do not necessarily reflect those of the institutions I am affiliated with.

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Ladies and Gentlemen,
Today, as policies and capital markets seem to be moving from the "Unconventional Era" and "Great Distortion" towards "Gradual Normalisation", I would like to discuss not only the prospects, but also the challenges we face head-on.
Let me start by offering my own insights into the global market outlook.

1. GLOBAL ECONOMIC OUTLOOK FOR 2017

The world economy

2017 will be very different from 2016, in many respects. If 2016 will be remembered as the year of Brexit and Donald Trump's election, 2017 I foresee may well be remembered for developments in the European continent. I refer to the national elections and the associated political uncertainty that may trigger further changes in the eurozone and the broader European Union, as we know it today. Two other key topics will be the new US economic policy under President Trump and the end of the dominance of central banks, which will pass the torch to fiscal policy across the globe.