ECB President Lagarde warns of 1920s-like global economic challenges due to pandemic, conflict, and energy crisis, urging flexibility in monetary policy.

ECB President Christine Lagarde cautioned that the global economy faces challenges reminiscent of the 1920s, including inflation volatility driven by the COVID-19 pandemic, European conflict, and an energy crisis. She emphasized that while central banks are better equipped to handle these structural changes, potential threats to globalization and the rise of tech giants complicate their efforts. Lagarde called for flexibility in monetary policy as the ECB prepares for its upcoming strategy review.

September 20, 2024
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