- Sees risk of persistently high unemployment in Europe
- ECB should stay supportive until demand fully recovers
- Markets may be too upbeat on Europe’s recovery
- Urges Europe to fix structural road blocks to lift GDP
- Stubbornly low inflation can undermine the recovery
Christine Lagarde speaking in Paris and warning that the light at the end of the tunnel is perhaps further than people think, and she’d probably not wrong.
“The good news is that the European economy is recovering from the crisis. Confidence is improving and financial markets are upbeat. Perhaps too upbeat”
