Lipton new IMF chief, Lagarde to lead ECB

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WASHINGTON/ FRANKFURT
American economist David Lipton will serve as interim leader of the International Monetary Fund, replacing Christine Lagarde who was nominated to head the European Central Bank, the IMF board announced Tuesday. We accept Ms. Lagarde’s decision to relinquish her IMF responsibilities temporarily during the nomination period,” the board said. We have full confidence in First Deputy Managing Director David Lipton as Acting Managing Director of the IMF.
Christine Lagarde will raise the profile of the European Central Bank, making it a more politically-savvy institution that takes its message directly to the people. However policy innovation, the trademark of her predecessor, may be relegated. In return, Lagarde may be able to use her considerable diplomatic skills to persuade Germany to help temper a euro zone slow-down by raising its spending levels a feat outgoing ECB chief Mario Draghi failed to achieve.
Facing a protracted crisis, Draghi and his team of highly-trained monetary policy-makers have essentially devised the world’s biggest experiment in unconventional policy over the last five years.

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