Head of the European Central Bank (ECB) Christine Lagarde criticized the monetary policy of some European countries, calling it counterproductive in the fight against high inflation. She does not see the benefits of monetary policy in such approaches.

European states, including France and Germany, have introduced a lot of programs that provide subsidies for energy costs, after natural gas prices jumped sharply amid the situation in Ukraine.

Meanwhile, these policies have been criticized. There are other types of monetary policy that Lagarde believes would be more effective. 

Lagarde said the world’s central banks must cooperate more actively in the face of high inflation and understand the extent to which their monetary policy decisions affect the economies of other nations.

“Central bank governors need to cooperate to understand what the effects of domestic monetary policy will be, because financial markets are extremely integrated and because each of our monetary policies affects other countries around the world,” Lagarde said during an interview at the annual meeting of the Institute of International Finance.

Earlier we reported why the pound is falling.