On November 23, Mr. Etienne FRANZI, President of the Association Monégasque des Activités Financières (AMAF), invited Mr. Jean-Claude TRICHET, former Governor of the Banque de France and President of the European Central Bank, to speak at a conference on "Inflation and geostrategic threats, the new post-covid finance environment".
Also in attendance were HEM Pierre DARTOUT, the Principality's Minister of State, Mr Marco PICCININI, Councillor-Minister of Finance and the Economy, and Mr Jacques-Henri DAVID, former Chairman of the Commission de Contrôle des Activités Financières (CCAF).
Mr. TRICHET began by outlining the reasons behind over ten years of very low "ante-covid" inflation.
He then detailed the measures taken by central banks to deal with the consequences of the pandemic, including the implementation of negative interest rates!
Finally, he commented on the reactions of the latter to curb the ensuing resurgence of inflation, underlining the delay in doing so, as most observers had initially thought it would be transitory.
In conclusion, after mentioning geostrategic threats, Mr. TRICHET expressed confidence in the ability of central banks to regulate the economy and preserve reasonable price stability over the long term. In his view, core inflation of 2% is conceivable by 2025.
