Central Banks

Lagarde Joins Powell in Rejecting Stagflation Label of 1970s

European Central Bank President Christine Lagarde inf Frankfurt, on April 30.

Photographer: Liesa Johannssen/Bloomberg

European Central Bank President Christine Lagarde said stagflation is a label that belongs to the 1970s and shouldn’t be used to describe the current predicament of the euro zone.

An outlook that combines inflation risks along with the potential for weak growth doesn’t add up to the toxic mix that afflicted the world back then, she told reporters in Frankfurt on Thursday.