Christine Lagarde has issued a warning to governments and “hawks” within the ECB: the eventual rise in inflation, after the end of confinement, cannot serve to justify an anticipation of the withdrawal of monetary stimuli. If this scenario occurs, the ECB should make it clear that it is willing to tolerate a little inflation for some time without disturbing monetary stimuli. For Portugal and other more fragile countries, this clarification will be essential.
In the political battle, pointing the blame at the wrong opponent is dangerous, because the other competitor, the real culprit who plays dirty, comes out unscathed and ready to do more damage. It should not be necessary to explain this to some politicians.
The agreement highlights two compelling realities: when the interests of the USA and Europe do not coincide, Europe will follow its path; it is possible for different political regimes to cooperate and coexist without destroying themselves.
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