## Managing Director’s Welcoming Remarks at the Camdessus Lecture with Mario Draghi

_IMF News, May 14, 2015_

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## Bibliographic details
- Published: May 14, 2015

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### Event and context
- Occasion: the second Michel Camdessus Lecture on central banking.
- Date on page: May 14, 2015.
- Speaker introduced: President of the European Central Bank, Mario Draghi.
- Purpose: reflect on challenges central banks face in the aftermath of the global financial crisis and highlight the IMF’s commitment to collaborate with central banks.

### Assessment of the global recovery and monetary policy
- Growth divergence and asynchronous monetary policy across major economies:
  - Further easing in the euro area and Japan.
  - The United States and the United Kingdom on the path toward normalization.
- Exchange rate and market developments:
  - The dollar has appreciated, while the euro and yen have weakened.
  - Market volatility has increased from historical lows, with rising risk spreads and currency depreciation in some emerging markets.
- Financial stability risk rotation:
  - From advanced economies to emerging markets.
  - From banks to the non-bank financial sector.
  - From solvency risks toward market liquidity risks.
- Downside scenario highlighted:
  - A “new mediocre” — defined as low growth for a long time — remains a distinct possibility.

### Policy recommendations to avoid a “new mediocre”
- Monetary policy:
  - Continues to have an important role; explicit support expressed for the ECB’s actions.
  - Noted: “the significant further easing of monetary policy in January of this year has done much to stave off the threat of deflation and support weak demand.”
  - Emphasis: monetary policy and price stability are essential for strong, sustainable, and inclusive growth.
- Complementary measures beyond monetary policy:
  - Structural reforms to unleash productive potential (examples: streamline regulations in labor and services markets).
  - Fiscal consolidation should be designed to protect the capacity of the poor and vulnerable to fully contribute to the economy and society.
    - Estimated impact in advanced economies: more efficient fiscal policy could increase the long run growth rate by one third of a percentage point per annum.
  - Increase opportunities for women:
    - By some estimates, equal female labor force participation with men would raise GDP by 5 percent in the U.S. and 9 percent in Japan.
  - Broad push for more inclusive growth:
    - IMF initiative launched to cover jobs, inequality, gender, and energy issues in surveillance of member countries’ policies.
    - Active engagement in the sustainable development agenda.

### Leadership, praise for Mario Draghi, and introduction
- Leadership in crisis emphasized as crucial; Mario Draghi singled out for demonstrated leadership.
- Career highlights cited for Mario Draghi:
  - Director of the Italian Treasury.
  - Vice Chairman and Managing Director at Goldman Sachs.
  - Governor of the Bank of Italy.
  - Chairman of the Financial Stability Board.
  - President of the European Central Bank since 2011.
- Closing: invitation for Mario Draghi’s lecture and subsequent conversation on major challenges facing central banks.

*Managing Director’s Welcoming Remarks at the Camdessus Lecture with Mario Draghi*

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## References

- [Japan and the IMF](http://www.imf.org/external/country/JPN/index.htm)
- [United Kingdom and the IMF](http://www.imf.org/external/country/GBR/index.htm)
- [United States and the IMF](http://www.imf.org/external/country/USA/index.htm)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [Christine Lagarde](https://www.imf.org/external/np/omd/bios/cl.htm)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Webcast](https://www.imf.org/external/mmedia/view.aspx?vid=4236830815001)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/28/04/53/sp051415_