Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
World

Draghi Urges Cooperation to Combat Anti-Globalization

Draghi told an annual conference of central bankers in Jackson Hole that multilateral cooperation is crucial to reassuring workers who worry that free trade puts their jobs at risk

Janet Yellen stands with other Federal Reserve Members while attending the meeting in Jackson Hole, Colorado, photo: AP
4 weeks ago

JACKSON HOLE, Wyoming — Mario Draghi, president of the European Central Bank, said Friday that the global economy is strengthening but warned that countries must work together to resist a growing backlash against open trade.

Draghi told an annual conference of central bankers in Jackson Hole that multilateral cooperation is crucial to reassuring workers who worry that free trade puts their jobs at risk. He said advanced economies need to ensure that an open global economy preserves fairness, safety and equity for their labor forces.

In his speech, Draghi did not address the financial health of the eurozone, which includes the 19 nations that share the euro currency. Some investors had expected him to send some signal about when the ECB will begin slowing its monthly bond purchases, which have been intended to keep borrowing rates low but are less needed now that the European economy is improving. The ECB is expected to take up the issue when its policymakers meet next month.

In a question-and-answer session after his speech, Draghi was asked how he thought the ECB’s bond buying program had worked. Draghi had used a speech three years ago in Jackson Hole to signal that the ECB was considering following the lead of the Federal Reserve and launching bond purchases to try to lower long-term loan rates at a time when many nations were struggling to emerge from a deep recession.

Draghi said he felt that the efforts the ECB had made had worked “very well” and that the bond purchases had been “very successful because the recovery … is gaining ground.”

But he said there were still factors slowing the rebound, including the slowness of wage gains. Because of that, he said, “a significant degree of monetary accommodation is still warranted.”

When Draghi first suggested a few months ago that the ECB might begin paring its bond purchases, the comment sent the euro rising in value against the dollar, a development that has hurt European exports by making them costlier. The euro’s rise also complicated the ECB’s efforts to increase undesirably low inflation.

Since then, Draghi has been cautious in sending any signals that a reduction in bond purchases could be occurring.

The ECB is expected to discuss the issue at its meetings this fall. Many analysts expect the ECB to decide to begin a gradual reduction in the size of the monthly bond purchases, perhaps beginning next year.

MARTIN CRUTSINGER

Comments Whatsapp Twitter Facebook Share
More From The News
Sports

Prosecutors to Argue Pistorius should ge ...

3 hours ago
Business

Global Shares Drift as Investors Pause A ...

3 hours ago
World

German WWI U-Boat Found off Belgium with ...

3 hours ago
World

Moscow Unveils Monument to Kalashnikov, ...

3 hours ago
Most Popular

Hurricane Maria Smashes Dominica, Now Me ...

By The Associated Press
World

Global Shares Drift as Investors Pause A ...

By The Associated Press
Business

Mancera Pays Tribute to 85 Earthquake in ...

By Notimex
Mexico

Rohingya Muslims being Wiped Off Myanmar ...

By The Associated Press
World

German WWI U-Boat Found off Belgium with ...

By The Associated Press
World