Economics

Top ECB Officials Defend Low Rates With Eye on Side Effects

  • ECB chief and her colleague Schnabel urge government support
  • Chief economist Lane says negative rates are still effective
WATCH: Lagarde says fiscal policy can be highly effective in combating the risk of side effects from long-term accommodative monetary policy.Source: Bloomberg
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Three of the European Central Bank’s top policy makers defended their monetary stimulus even as they acknowledged that the negative side effects must be watched closely.