Economics
ECB Urges More Economic Stimulus for Faltering Pandemic Recovery
- President Lagarde warns of “cliff effect” in ending fiscal aid
- Chief economist says prudent to add stimulus to lift inflation
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Two of the European Central Bank’s top officials signaled the need for extra monetary and fiscal stimulus as the euro zone struggles to sustain its economic recovery from the coronavirus pandemic.
ECB President Christine Lagarde said that a “cliff effect” in which fiscal aid is withdrawn too soon is her greatest fear, while chief economist Philip Lane said it could be “prudent” to add extra monetary support to sustainably lift inflation.