Will Christine Lagarde suppress the euro?


Will Lagarde oppose the rising euro exchange rate and what will be the bank's forecasts for growth and inflation? Christine Lagarde should have been following closely the recent rise in the euro exchange rate. Since the beginning of June, the common European currency has appreciated by about six percent against the US dollar. This is a problem for the central bank: On the one hand, the strength of the euro makes exports from Europe more expensive, which tends to weaken growth - on the other hand, it makes imports cheaper and thus pushes the already low inflation in the euro area even lower down. Although the ECB does not formally pursue any exchange rate targets, Lagarde's predecessor Mario Draghi often commented on the euro exchange rate when he saw cause for concern. (Christine Lagarde euro) In addition to the strong [...]