Bank of France deputy governor, Agnès Bénassy-Quéré, recently discussed the challenges facing central banks, including disinflation, innovation, and climate change. She emphasized the importance of citizens following economic data such as GDP and inflation rates, as these factors directly impact purchasing power. Bénassy-Quéré explained that climate change poses economic risks that could lead to inflation and strain public finances, shifting the burden of stabilization to central banks. Despite global unrest in recent years, French purchasing power has not decreased, and events like Taylor Swift’s concerts and the Olympics have helped boost GDP growth. Bénassy-Quéré highlighted the impact of these events on various sectors such as hotels, restaurants, transportation, and broadcasting. While these effects are short-term, they contribute to overall economic growth. The European Central Bank is set to announce its latest decision on interest rates on 12 September, although Bénassy-Quéré refrained from commenting on this matter. She stressed the need for careful handling of climate change policies to avoid negative economic impacts. Overall, Bénassy-Quéré’s insights shed light on the challenges and responsibilities facing central banks as they navigate complex economic landscapes.
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