Lagarde Says Europe's Economic Recovery Has Been Tepid

The transcript discusses the severe economic contraction caused by the coronavirus pandemic, highlighting job and income losses, reduced consumer spending, and investment. It notes some signs of economic stabilization as containment measures ease, but recovery remains slow. Macroeconomic projections indicate a significant decline in growth, with a potential rebound aided by fiscal and monetary support. Inflation is expected to stay low due to decreased energy prices and increased economic slack. The Governing Council is committed to ensuring effective monetary policy across sectors and countries.

What role has fiscal and monetary policy played in the economic recovery?

What are the expectations regarding inflation and economic slack?