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- ECB's president Lagarde: Side effects of policy become greater with time
ECB's president Lagarde: Side effects of policy become greater with time
- Monetary policy cannot, and should not, be the only game in town
- The longer our accommodative measures remain in place, the greater the risk that side effects will become more pronounced
- When interest rates are low, fiscal policy can be highly effective
- We want to assess whether a central bank digital currency could serve a clear purpose for the public and support the ECB's objectives
- Euro area growth momentum has been slowing down since the start of 2018, largely on account of global uncertainties and weaker international trade
- Moderating growth has also weakened pressure on prices, and inflation remains some distance below our medium-term aim
- Euro area unemployment at 7.4% is at its lowest since May 2008
- Wages increased at an average rate of 2.5% in the first three quarters of 2019, significantly above their long-term average
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