Lucas Papademos: Globalisation, inflation, imbalances and monetary policy Speech by Mr Lucas Papademos, Vice-President of the European Central Bank, at a conference on “The Euro and the Dollar in a Globalized Economy” jointly organised by the Department of Economics, Washington University, the Weidenbaum Center on the Economy, Government, and Public Policy, and the Federal Reserve Bank of St. Louis, and Sponsored by the European Union Delegation to the USA, St. Louis, 25 May 2006.
We have not yet finished this task: The federal funds rate appears to be below the level that we would expect to be consistent with the maintenance of stable inflation and full employment over the medium run, and, if growth is sustained and inflation remains contained, we are likely to raise rates further at a measured pace.