ECB’s Coeure says winding back globalisation is the wrong solution

ECB executive board member Coeure with scheduled speech 6 April

  • EU is a vehicle that brings benefits of economic openness to greatest number of its citizens
  • ECB simulations on tariffs on US imports/exports would have significant adverse effects on global economy
  • falls in equity prices and prevailing uncertainty on retaliatory measures have already contributed to tighter financial conditions

“Greater global economic integration has boosted living standards worldwide and lifted millions out of poverty. Yet, its distributional impacts both across and within countries have not been adequately addressed, a fact that ultimately provides the political motivation for the protectionist moves we observe.

Winding back globalisation is the wrong solution to address these concerns. A retreat from openness will only fuel more inequality as import prices rise, goods become dearer and real incomes fall. It would deprive people of the undisputed economic advantages that trade and integration bring and thereby exacerbate economic hardship for the poorest in society. And it would breed distrust among nations, making for a more unstable international order.”

Zzzzzzzzzzzzz. Nothing on mon pol to get the algos going but not the subject of his “The consequences of protectionism” speech. Maybe a Q&A after.

Meanwhile EURUSD 1.2224 after 1.2214 lows. GBPUSD 1.3991 from 1.3986 USDJPY 107.41 from 107.46 . 

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