Monetary Dialogue with Christine Lagarde, President of the European Central Bank

This Monetary Dialogue took place in a still challenging environment, marked by uncertainty, inflationary pressures and the deteriorating economic outlook in the euro area. Since the last Monetary Dialogue in June, headline inflation in the euro area remained high, but has continued its downward trend and reached 5.2% in August. The ECB's Governing Council has stayed on its monetary policy tightening path and raised the key interest rate to a record high of 4% on 14 September. The two specific topics of discussion as chosen by ECON for this Dialogue were: 1) Achieving the right fiscal-monetary mix in the context of the economic governance review 2) Excess liquidity in the euro area: developments and implications.