October 17, 2021 19:59 PM
[CCTV News]European Central Bank President Lagarde delivered a speech entitled “Globalization after the Epidemic” at the annual meeting of the International Monetary Fund on the 16th local time, saying that he has not yet escaped the impact of the new crown epidemic and the European Central Bank will continue Implement monetary policies that support the Eurozone economy.
Lagarde pointed out in his speech that day that globalization is always vulnerable to global shocks. In addition to the new crown epidemic, the rise of protectionism, the acceleration of climate change, and the change of industrial policies have greatly affected the “economy that embraces globalization”, including Europe. She believes that if Europe wants to continue to benefit from a globalized and transitioned world in the future, it must use its own economic strength to support global and mutually beneficial trade opening on the one hand, and strengthen internal demand on the other hand to inject stability into the turbulent global economy.
In this regard, Lagarde made three suggestions: First, direct public and private investment to economic sectors that can generate more real income in the future, namely the green and digital sectors. In Lagarde’s view, the epidemic has made this trend more obvious, but the European Central Bank also needs to provide financing and a regulatory framework to help the economy adjust and adapt more smoothly. Second, fiscal policy support should not be withdrawn before the economy achieves a stronger recovery. In Lagarde’s words, this means that fiscal policy needs to promote structural changes in the economy, from a one-size-fits-all approach to a more targeted action plan to support sustainable high demand. Third, monetary policy will continue to support the economy in order to maintain the inflation rate at the ECB’s 2% inflation target in the medium and long term. Lagarde promised that the European Central Bank will continue to work to maintain favorable financing conditions for all economic sectors during the epidemic.