Monetary policy: The ECB has admitted its limits

As the coronavirus Covid-19 crisis mounts, banks are finally being heard on negative rates, but that might not be a good thing.





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It couldn’t have come on a worse day: Christine Lagarde had US president Donald Trump to thank for that.

Her first big test as president of the European Central Bank (ECB) was already an all-but impossible one to pass, and even more so after a new US ban on flights from continental Europe earlier on Thursday had put a big damper on the eurozone’s most important monetary policy meeting in years.

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