Pimco about Lagarde

Andrew Bosomworth, Head of German portfolio management at PIMCO

Christine Lagarde ought to bring more of a fiscal perspective to monetary policy, which could be timely given the challenge facing the ECB during the next recession will not only be what is left in the tool box, but the efficacy of those tools too.

A fiscal perspective of monetary policy could take the form of the ECB continuing to support governments’ fiscal issuance through asset purchase sin the secondary market. Personally she has advocated the ECB maintain an accommodative stance and the IMF has argued for more simplicity and symmetry of the inflation target, so one could expect part of her focus to lie here.