None of this can be a surprise as she was always unfit to be ECB head. she is a politician, as you describe, and a crooked one at that. One should expect that there will be many more errors before her term is over.
Operative quote is the one on those with poor analytical frameworks. Lagarde lacks the conviction of a framework for analyzing what’s happening in the economy and how a CB should react to a set of economic developments. Hence, decision making has one eye on external factors; understandably, as ECB is meant to oversee monetary policy for a a disparate group of countries. But knowledge and conviction matter especially now that the ECB has to contend with the possibility of inflation resuming.
None of this can be a surprise as she was always unfit to be ECB head. she is a politician, as you describe, and a crooked one at that. One should expect that there will be many more errors before her term is over.
Operative quote is the one on those with poor analytical frameworks. Lagarde lacks the conviction of a framework for analyzing what’s happening in the economy and how a CB should react to a set of economic developments. Hence, decision making has one eye on external factors; understandably, as ECB is meant to oversee monetary policy for a a disparate group of countries. But knowledge and conviction matter especially now that the ECB has to contend with the possibility of inflation resuming.