(THREAD) The economy is back from the brink, but not out of the woods, says President Christine @Lagarde in her opening speech at the #ECBForum on Central Banking.
After an unusual recession, the euro area is going through a highly atypical recovery ecb.europa.eu/press/key/date…
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After an unusual recession, the euro area is going through a highly atypical recovery ecb.europa.eu/press/key/date…
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Lagarde: This atypical recovery is leading to rapid growth, but also to supply bottlenecks appearing unusually early in the economic cycle.
The pandemic has also introduced new trends that could produce both upward and downward price pressures.
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The pandemic has also introduced new trends that could produce both upward and downward price pressures.
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Lagarde: These trends include
1⃣ Demand side changes, e.g. people spending their extra savings
2⃣ Supply side changes, e.g. faster digitalisation
3⃣ Faster implementation of the green transition
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1⃣ Demand side changes, e.g. people spending their extra savings
2⃣ Supply side changes, e.g. faster digitalisation
3⃣ Faster implementation of the green transition
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Lagarde: The key challenge is to ensure that we do not overreact to temporary supply shocks, while also nurturing the positive demand forces that could lift inflation towards our 2% target.
Read the full speech ecb.europa.eu/press/key/date…
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Read the full speech ecb.europa.eu/press/key/date…
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