Economics
ECB’s Lagarde Expects Disinflation as Crisis Transforms Economy
- President says supply chains will shrink, automation will rise
- Lagarde is “determined” to make ECB address climate change
Christine Lagarde is displayed on a laptop computer, beyond a 20 Euro banknote, during a live stream video of the central bank's virtual rate decision news conference June 4.
Photographer: Simon Dawson/Bloomberg
This article is for subscribers only.
European Central Bank President Christine Lagarde said the euro zone faces about two years of downward pressure on prices, but could see a turnaround after that because the coronavirus crisis will accelerate the transformation of the economy.
The ECB head said in a webinar on Saturday that the pandemic will spur the preexisting shift toward greater digitization and automation, shorter supply chains, and greener industries.