The European Central Bank (ECB) President Mario Draghi said on Friday the ECB is willing to push more accommodative monetary policy as the continent suffered stagnant economies.
The ECB announced a package of stimulus measures in June, including record-low interest rates, targeted longer-term refinancing operations and preparatory work related to outright purchases of asset-backed securities
"I am confident that the package of measures we announced in June will indeed provide the intended boost to demand, and we stand ready to adjust our policy stance further," said Draghi at the Fed's annual symposium in Jackson Hole, Wyoming.
At present, the unemployment rate in the euro area was 11.5 percent, almost twice the rate in the United States, while the price level kept falling. In July, the annual inflation rate dropped to 0.4 percent in July from 0.5 percent in June, far below the ECB's target of 2 percent, according to the data of ECB.
To boost aggregate demand, Draghi said "monetary policy can and should play a central role, which currently means an accommodative monetary policy for an extended period time."
The Fed has held its annual symposium in Jackson Hole since 1981, which has also been attended by many foreign central bankers around the world. Two former Fed chairmen, Ben Bernanke and Alan Greenspan have used it to signal major policy changes during their term. The theme of this year's meeting is Re-Evaluating Labor Market Dynamics.