Lagarde: Fiscal policy and growth in Europe | Metals Mine

  • Lagarde: Fiscal policy and growth in Europe

    From ecb.europa.eu

    It is a pleasure to be here in Vienna. The relationship between central banks and governments has evolved substantially over the centuries. Historically, central banks were often created to provide governments with financing. But if monetary history teaches us one lesson, it is that central banks kept under the thumb of the state tend to generate inflation. This insight emerged only gradually. In the early 19th century, Napoleon Bonaparte – who founded the Banque de France – is said to have acknowledged that a central bank should serve the state, but not be excessively dominated by it. Well, that was a start at ... (full story)

Added at 7:21am

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