· Christine Lagarde Wiki · European Central Bank WikiSetbacks and strides forward: structural shifts and monetary policy in the twenties
Read full speech on ecb.europa.eu ↗Context2024 Michel Camdessus Central Banking Lecture by Christine Lagarde, organised by the IMF.
Why it mattersLagarde explains the three-part framework the ECB uses to set rates amid structural change.
Problems raised
- The economy's structure keeps changing.
- Monetary policy channels change too.
- Uncertainty is high.
Solutions proposed
- Use a three-pronged framework: forecast, underlying inflation, transmission.
- Keep the inflation goal clear and credible.
- Anchor expectations.