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Mr. Draghi’s speech in Frankurt – Thought number 1

Introductory remarks by Mario Draghi, President of the ECB, at the 21st Frankfurt European Banking Congress “The Big Shift”,  Frankfurt am Main, 18 November 2011

“Activity is expected to weaken in most of the advanced economies. This is the result of a weakening of various components of aggregate demand, both domestic and foreign.”

Good. By which I mean: let’s do it, monetary and fiscal policy can be expansive without being expensive. Prices will not rise and output will, a free lunch.

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