The ECB Will Soon Be Run By A Politician. Here’s What Christine Lagarde Has Said About Monetary Policy
Earlier this week, when Christine Lagarde was officially nominated to succeed Mario Draghi, we took a few minutes to detail why she may be a good choice to lead the ECB given prevailing economic and political trends.
Here are the relevant passages in that regard from "Christine Lagarde Will Try To Fill The Big Shoes":
Part of the problem with the monetary policy transmission channel in the eurozone is that it’s expected to work across disparate economies operating under a hodgepodge
Bankrupt conservative savers, who used to be the safety net for the economy in a recession.
Do QE, until your currency is worthless.
Promote an asset bubble much bigger than 2008.
Great policies.
People have been saying that for 10 years. While you’re right in theory (and certainly in principle), any asset manager who tried to put your comment to work in the market would have gone out of business 5 years ago.
Some confidently predicted ten years ago that by now we’d all be rolling wheelbarrows of $100 bills to the store to buy milk. Some acted on similar beliefs, to their great financial detriment. See, e.g., this guy: https://www.hussmanfunds.com Undeniably very smart. Undeniably a disaster of an investor for the past decade, being -55% L10Y.