ECB, Lagarde reassures: ‘with war no stagflation, growth even in the darkest scenario’

ECB, Lagarde reassures: ‘with war no stagflation, growth even in the darkest scenario’

Europe's efforts to combat climate change and reduce dependence on fossil fuels will produce inflationary effects in the short to medium term, but will reduce prices in the long term.
Europe's efforts to combat climate change and reduce dependence on fossil fuels will produce inflationary effects in the short to medium term, but will reduce prices in the long term.

ECB number one Christine Lagare continues to reassure the markets on the absence of the risk of a stagflation in the Eurozone:

“Even in the darkest scenario, with second round effects, the oil and gas boycott and the worsening of the war with a protracted duration, even in these scenarios we see growth of 2.3%. it will be some growth, “Lagarde said.

Of course, in his opinion, the war in Ukraine triggered by Russia’s invasion of the country will have “consequences” on growth, given that inflation will accelerate and confidence (of consumers and companies) will be affected.

And, for central banks, the Eurotower president pointed out, the difficulty lies in maintaining stability without causing damage to the economy. But for Lagarde, the danger of a flare-up of inflation accompanied by a stagnant economy does not exist.

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.