European Central Bank chief Mario Draghi on Friday pledged to maintain trade liberalization but acknowledged the widespread perception that lowered trade barriers had fueled inequality.
However, Draghi 's widely anticipated address at an annual gathering of global central bankers in Jackson Hole, Wyoming, made no mention when the ECB could cancel its stimulus package of 39 , Multi – billion dollar bond purchase adopted as a result of the 2008 Financial Crisis.
The decision not to discuss the European policy of quantitative easing has seen the value of the euro rise against the dollar, the European currency rose by almost 2.5 percent against the euro Green note following the publication of Draghi's remarks at 1900 GMT.
Both Draghi and Federal Reserve Chairman Janet Yellen exposed the urgent political issues in their remarks to Jackson Hole on Friday in order not to disturb the markets.
"After all the excitement about possible fireworks from Draghi to Jackson Hole, the speech was an anti-climax, a non-beginner," said Carsten Brzeski and Bert Colijn, ING in a research note.
"The demand for an ECB game plan on slipping will no longer be strong and Draghi will have to tackle it".
Draghi said that without greater productivity growth, the current recovery cycle "converged down" to slower growth rates, according to prepared remarks.
But he also warned against the threat of protectionism, which has increased as the developed world is increasingly dissatisfied with free trade.
"People are concerned about whether openness is fair, that it is safe and whether it is fair," Draghi said.
Britain's shock to exit the European Union and Donald Trump's nationalist presidential campaign against open borders have caused waves of discomfort in neighborhoods that normally promote the liberalization of Such as the International Monetary Fund and the World Bank.
"A turn towards protectionism would represent a serious risk to continued productivity growth and potential growth in the global economy," Draghi said.
He called for stronger public policies to support those left by globalization, including education and vocational training.
Echoing remarks made earlier Friday by Yellen, Draghi also offered an energetic defense for the pursuit of strong financial regulations adopted after the collapse of 2008, adding that he There was "never a good time for loose regulation".
He also stated that the harmonization of tax policies between administrations could help to stop the shift of tax burdens from capital to workers when countries reduce labor protections to encourage investment and boost competitiveness .
"Taking a stand against the dynamics of backward racing that threatens labor protections calls for a common regulatory approach," Draghi said, noting that European social safeguards had helped prevent this.