28 Oct 2019 5 min read

Europe – the inflation Lagarde needing fiscal fuel

By John Roe

Mario Draghi delivered many things, but inflation was not among them. Will anything change for the next European Central Bank president?

Mario Draghi achieved so much in eight years as president of the European Central Bank (ECB). Swift and decisive action saved the euro, tempered populism, and averted crises.

But the bank’s inflation target eluded him entirely. Here I explain why the future of inflation in Europe is less about incoming ECB president Christine Lagarde, and more about public support for using fiscal firepower. Without it, the Eurozone looks increasingly likely to be the next Japan. 


John Roe

Head of Multi-Asset Funds

With failed football dreams behind him, John applies the same level of enthusiasm to investing and how to improve outcomes by battling behavioural biases. He leads on oil research, but also gets involved in a wide range of macro topics. That love of variety also explains his craft beer fascination. Hard to shut up, he’s a regular guest on Bloomberg, a conference speaker and an LGIM Director. His analytical thinking benefits from being an Actuary with an economics degree and having previously worked as a strategist at RBS.

John Roe