4/19/2017, 5:01 PM (Source: TeleTrader)
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ECB's Coeure: France won't undermine Eurozone

There is no worry about the future of the euro in general, as France isn't set to exit the monetary union, Benoit Coeure said in New York on Wednesday. In his take on policy, the board member of the European Central Bank said the institution's officials must be certain inflation is on the right trajectory, but he reiterated that risks are largely in balance and added the case for normalization of rates is strengthening.

ECB is seriously leaning on forward guidance as policy tool, he noted and stressed policymakers are watching developments regarding the United States Federal Reserve's actions.

Dismantling regulatory standards for international finance would "revive distrust" and fuel risk taking, which was proven to be raising inequality, the French economist said in a speech on dangers emerging from isolationism. "Although globalization might have amplified growing income inequality, empirical analysis tends to suggest that technological progress, and the associated rise in demand for skilled labor over low-skilled, is likely to explain most of the rise in income inequality in advanced economies since the early 1980s. And yet, fears of globalization appear to dominate public discussion and are likely to have been a key factor in fomenting political opposition to the free movement of goods, services, capital, and people," he underscored.

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