European Central Bank Chief Says Monetary Policy Must Stay ‘Very Patient’
The importance of trade “may actually be growing” because developed nations must rely on innovation as a source
of growth, Mr. Draghi said, particularly given the burdens of aging work forces and high levels of public debt.
— Mario Draghi, the president of the European Central Bank, said Friday
that monetary policy must remain “very patient” even as an economic recovery finally takes hold in Europe.
“People are concerned about whether openness is fair, whether it is safe and whether it is equitable.”
An economic expansion has taken hold across the developed world, but the pace of growth remains slow by historical standards.
Mr. Draghi spoke at an annual conference sponsored by the Federal Reserve Bank of Kansas City, at which the morning sessions were substantially devoted to research showing
that trade has important negative consequences that policy makers have failed to address.
Mr. Draghi noted that potential growth in the developed world has slowed to 1 percent from an average of 2 percent in 2000