Christine Lagarde’s speech has just been published at a bank conference in Frankfurt. It contains a lot of banalities! What stands out is the call for the states to provide more stimulus (probably because the ECB has finally arrived at its possibilities):
- Monetary policy achieves objectives faster and with fewer side effects if accompanied by political measures (FMN: but which measures??)
- Monetary policy will continue to support the economy and respond to risks (FMN: really?
- Cyclically supportive monetary policy was an important driver of domestic demand (FMN: the old Draghi mantra!)
- much uncertainty in view of global uncertainties (FMN: razor sharp analysis!)
Everything very superficial and unspecific! At some point, the new ECB President will have to comment on what she wants to do in concrete terms. Rather than just using noble and meaningless phrases!