MNI BRIEF: US Protectionism Net Negative For Global Econ- Lane
MNI (LONDON) - The net effects from protectionism following Donald Trump's election will be negative for the global economy, ECB chief economist Philip Lane said in an interview published on Monday, although he said there were two way risks for the eurozone.
"If the global economy is more protectionist, this will impair the growth rate of the European economy, and that will be likely to reduce inflationary pressures. On the other hand, if there is a lot of protectionism, import prices may be higher. So we will need to strike a balance in our assessment between external pressure on inflation – which may be stronger from the U.S. but weaker from China – and possibly less domestic pressure on inflation," he told Les Echos.
"Our monetary policy therefore needs to address both downside and upside risks," he said. (See MNI SOURCES: ECB Heads For 25BP Cut; Risks From Trump, Germany )
To register to hear Philip Lane at an MNI Webcast event on Dec 18, click here