Lagarde's Political Agenda Is a Risk for the ECB
Using a central bank as a blunt instruments to force government spending is not a good idea.
New European Central Bank President Christine Lagarde may be too political for the job.
Photographer: Aris Oikonomou/AFP via Getty Images
The Christine Lagarde-era at the European Central Bank is barely a week old, but these first few days raise concern that her political agenda risks undermining trust in the institution.
More specifically, Lagarde is expected to use the might her new position to push through ideas that European elites prefer, such as closer fiscal coordination, but that broader populations are uneasy about in general. Using a central bank as a blunt instrument to force controversial political goals is not a good idea, but Lagarde appears poised to take the ECB in this direction. In an interview last week with French radio RTL, Lagarde said: