Draghi: regulators should be wary of rekindling the incentives that led to the crisis

The European Central Bank President Draghi is speaking at the Federal Reserve Bank of Kansas City’s Economic Symposium at Jackson Hole and the euro has broken through on to the 1.19 handle but meeting resistance at 1.1941 the high.

• ECB's Draghi says the global recovery is firming up.
  ECB's Draghi says without stronger potential growth, the cyclical recovery we are now seeing globally will ultimately converge downwards to those slower growth rates
• ECB's Draghi says to inject more dynamism into the global economy we need to raise potential output growth
• ECB's Draghi says openness to trade is under threat
• ECB's Draghi says multilateral cooperation is crucial in responding to concerns about fairness
• ECB's Draghi says a turn towards protectionism would pose a serious risk for continued productivity growth and potential growth in the global economy 

Further comments:

• Says  there is never a good time for lax regulation.
• Says lax regulation runs the risk of stoking financial imbalance.
• Says with monetary policy globally very expansionary, regulators should be wary of rekindling the incentives that led to the crisis.

Yellen did not link financial stability to monetary policy - Nomura