ECB Draghi Speech recap: monetary policy must always prepare for new challenges

During his opening remarks on ‘The Interdependence of Research and Policymaking’ at the Lindau Meeting on Economic Sciences, in Germany, the ECB President Mario Draghi was noted saying that monetary policy must always prepare for new challenges. 

Key quotes: 

   •  we must beware of gaps that still remain in our knowledge
   •  while forward guidance is a useful instrument recent research has highlighted that it's effectiveness can be improved with other non-standard monetary policies
   •  when the world changes as it did ten years ago, policies, especially monetary policy, need to be adjusted. Such an adjustment, never easy, requires unprejudiced, honest assessment of the new realities with clear eyes, unencumbered by the defense of previously held paradigms that have lost any explanatory power
   •  policy actions undertaken in the last ten years in monetary policy and in regulation and supervision have made the world more resilient. But we should continue preparing for new challenges