Christine Lagarde is probably the first major European policymaker to speak openly about why the EU is falling behind globally. But her plan for fixing the problem falls way short.
Although the central bank president makes some salient points, they do not add up to the really big reason why Europe keeps falling economically behind America.
As the economic elite comes to Washington for the IMF-World Bank meetings, they cry about Trump’s idea for trade tariffs. Frankly, they have no idea what they are talking about.
The prospect for lower interest rates in Europe is fading, but the reason has nothing to do with the European economy. The reason is found on the other side of the Atlantic Ocean.
