Economy

New Perspective – Lagarde’s ECB

By November 7, 2019 No Comments

Perspectives on Mogul News are a curated selection of stories from the world’s leading publishers, giving you more than one side of the story on important issues that face us, and society as a whole.

In this week’s Perspective, we look at what business in Britain might look like after Brexit. Here’s a quick note from our editor to introduce it!

At the end of last week Christine Lagarde, a former French finance minister and head of the IMF, took over the European Central Bank. She replaced Mario Draghi, who steered the eurozone through the fallout from the financial crisis and the sovereign debt crisis, both of which have hit Europe hard over the past decade.

She faces a tough task. The European economy is still stagnating with plenty of threats that could push it into contraction.

Coming into this atmosphere is not easy for Ms Lagarde. Unlike most central bank chiefs, she doesn’t have a background in economics. She is a politician first. But an unorthodox journey to head one of the world’s most important financial institutions could have some benefits.

She has to fight with governments that are averse to deficit spending even if it could boost the fortunes of Europe at large, a task more suitable for a politician than an academic. She has to communicate the benefits of the ECB to ordinary Europeans. And, yes, she has to shepherd the European economy through a decade that is bound to bring with it more turmoil and crises.

Explore what the ECB may look like under its new steward in ‘Lagarde’s ECB’. Sign up for a 7-day free trial to access this Perspective, our entire Perspective archive, and all the other features Mogul News has to offer.