I managed to eliminate this error by adding this to app.module.js:
import {OVERLAY_PROVIDERS} from "@angular/material";
@NgModule({
imports: [...
],
declarations: [...],
providers: [OVERLAY_PROVIDERS],
bootstrap: [...]
})
Edit (May 2018):
OVERLAY_PROVIDERS is now deprecated. use the OverlayModule instead
import { OverlayModule } from '@angular/cdk/overlay';
@NgModule({
imports: [
OverlayModule
],
declarations: [...],
providers: [...],
bootstrap: [...]
})