ECB’s Villeroy Says Caution Needed on Monetary, Budget Policy
European Central Bank Governing Council member Francois Villeroy de Galhau said uncertainty about the length of the current oil shock and the economic impact of Russia’s invasion of Ukraine mandate a cautious approach to monetary and budgetary policies in Europe. The oil shock “is very strong in its intensity, we don’t know its duration yet,” the Bank of France chief said on France Inter radio Saturday. Compared with the Covid-19 pandemic, the crisis stemming from the war “is much less violent for economic growth, but it’s translating into more inflation because of rising energy costs.” The economic
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