Lagarde proposes new European fiscal fund
Mechanism would reduce reliance on monetary policy to respond to future crises
The managing director of the International Monetary Fund, Christine Lagarde, proposed the creation of a “rainy day fund” to prepare for crises in the eurozone in a speech today (March 26) in Berlin.
The initiative originates from research conducted by the IMF, also published today. The proposal envisages the mechanism being financed by member states, via an annual contribution of 0.35% of GDP. This would be enough to reduce by more than 50% the impact of a regional shock, without resorting to
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