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Setbacks and strides forward: structural shifts and monetary policy in the twenties

· Christine Lagarde, President of the European Central Bank (Euro area (EU))

Summary written by Dark Majestic in its own words · topics: monetary policy and interest rates, inflation and price stability

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· Christine Lagarde Wiki · European Central Bank WikiSetbacks and strides forward: structural shifts and monetary policy in the twenties

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
  1. The economy's structure keeps changing.
  2. Monetary policy channels change too.
  3. Uncertainty is high.
Solutions proposed
  1. Use a three-pronged framework: forecast, underlying inflation, transmission.
  2. Keep the inflation goal clear and credible.
  3. Anchor expectations.
Read full speech on ecb.europa.eu ↗

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