World cen­tral bankers take up arms against pro­tec­tion­ism

Manila Times - - BUSINESS TIMES & WORLD REPORT - Pro­tec­tion­ism B4

FRANKFURT AM MAIN: mone­tary pol­icy, cen­tral bankers over the world are weigh­ing in on po­lit­i­cal de­bates as fears of

“Pro­tec­tion­ism will only lead to a loss of pros­per­ity for all,” warned Euro­pean Cen­tral

The Lux­em­bourger’s words came just three weeks af­ter US Pres­i­dent Don­ald Trump took

Even be­fore the in­au­gu­ra­tion, Trump was talk­ing up tar­iffs, telling a Ger­man in­ter­viewer he would slap a bor­der tax on BMW cars if the

“It surely can’t be the case that the way to build lib­eral pros­per­ity is to build bar­ri­ers be­tween one an­other,” Re­serve Bank of Aus­tralia

“Un­cer­tainty sur­rounds the di­rec­tion of US macroe­co­nomic poli­cies with po­ten­tial global spillovers,” the Re­serve Bank of In­dia wor­ried in a state­ment last week af­ter leav­ing its main in­ter­est

“Global trade re­mains sub­dued due to an in­creas­ing ten­dency to­wards pro­tec­tion­ist poli­cies and

Frag­ile in­de­pen­dence

In many advanced economies, cen­tral banks are free of gov­ern­ment con­trol, us­ing their in­de­pen­dent eco­nomic judg­ment to set in­ter­est rates and safe­guard fi­nan­cial sta­bil­ity while re­main­ing

But “cen­tral bankers have been ad­vanc­ing on to ground that isn’t re­ally theirs for years, of­fer­ing cau­tious pol­icy rec­om­men­da­tions,” Pictet bank

Now “a fur­ther step has clearly been taken,” he said, as mone­tary pol­i­cy­mak­ers brace for the un­cer­tain­ties of Trump’s eco­nomic poli­cies and the up­com­ing Brexit di­vorce ne­go­ti­a­tions, ex­pected to take Bri­tain out of the EU’s sin­gle mar­ket for

Bank gov­er­nors’ new­found readi­ness to pass com­ment is more a re­flec­tion that pro­tec­tion­ism “wasn’t much of an is­sue to talk about un­til re­cently” than stak­ing out of a po­lit­i­cal po­si­tion,

“Cen­tral bankers are al­ways happy to talk about things where eco­nomic the­ory is clear,” -

As in Bri­tain, where vot­ers had “had enough of ex­perts” ac­cord­ing to Brexit cam­paigner Michael Gove, gov­ern­ments may dis­agree with their cen­tral bank’s ad­vice for rea­sons un­re­lated

Long Euro­pean sum­mer

Cen­tral bankers are at odds how­ever about how

“I don’t think pro­tec­tion­ism is likely to spread vig­or­ously and widely in the world,” Bank of

Mean­while, Ger­man cen­tral bank Pres­i­dent Jens Wei­d­mann warned last week of “mount­ing scep­ti­cism over glob­al­iza­tion, a sen­ti­ment by no

“Bar­ri­ers and ex­clu­sion would be the wrong

Both Ger­many and Ja­pan stand to suf­fer if the US goes the pro­tec­tion­ist route, as Trump has lashed out at both with ac­cu­sa­tions they are ma­nip­u­lat­ing ex­change rates to make their

While the US is Ger­many’s big­gest ex­port cus­tomer, Europe’s largest econ­omy would be even worse off if its EU neigh­bors turned away from

Europe faces sev­eral cru­cial elec­tions this year, in­clud­ing in the EU’s tra­di­tional power cou­ple

Anti-euro and anti-EU par­ties are likely to gain ground in France, Ger­many, the Nether­lands, and promis­ing ref­er­en­dums on the sin­gle cur­rency if

The ECB’s Mario Draghi in­sisted to an Ital­ian law­maker last week that “the euro is ir­rev­o­ca­ble” as he faced ques­tions from a Euro­pean

But in the po­lit­i­cal trenches, it will be up to main­stream politi­cians to de­fend the eco­nomic con

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.