The president of the ECB (European Central Bank), Christine Lagarde, refuted the view that there is a situation of stagflation in the euro zone, stating that the conditions do not resemble the situation that marked the “1970s”.
In a panel discussion under the theme “The international role of the euro” held in Brussels this Monday (22), the leader argued that the current economic scenario is completely different from that of the decade, presenting different dynamics, while being emphatic about the ECB’s position.
“We will take necessary measures so that inflation is not embedded in the economy,” he stated.
Earlier, in a statement to the European Parliament’s Economic and Monetary Affairs Committee, Lagarde highlighted that there is still no evidence of de-anchoring or second-round effects that justify more forceful action.
Participating in the same panel, the European Union Commissioner, Valdis Dombrovskis, expressed the view that there is a situation of stagflation in the region.
