Changes in the Draghi speech at Jackson Hole

Changes in the Draghi speech at Jackson Hole

Draghi speech at Jackson Hole

Draghi pronounced a pretty major speech at Jackson Hole but the delivery of the speech has been marred by a controversy over changes he would have introduced himself compared to the original version of the speech (which was momentarily posted on the ECB’s website).

There are several interpretations about the origin of these changes: whether they respond to the climate there and the friendly peer pressure he might have received there. Or whether they are part of a more deliberate strategy to go beyond what his services had prepared in order to push both his Executive Board and the Governing Council further.

But the changes are pretty unequivocal on the assessment but more prudent on the action to take. Indeed, while Draghi qualifies the risk of disanchoring of inflation expectations, which really accelerated only in august. He is more cautious on the policy conclusions where he repeats the agreed language on “all instruments” rather specifically “unconventional instruments”.

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