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"The European performance, while solid, is not apparently sufficient to counteract the effect of the U.S. slowdown on the world economy," he said, urging what he called decisive monetary policy in both the United States and Western Europe and fundamental structural change in Japan to prevent a longterm slide in growth.
But that wasn't enough to spur the European Central Bank into fresh stimulus measures last week - although Mario Draghi did hint at action in June, Lagarde renewed her call for the ECB to be bold and decisive: "Monetary policy in Europe should therefore continue to provide impetus for growth".
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"It is decisive for monetary policy during this sovereign debt crisis that no further risk be transferred to the Eurosystem, and that the separation between monetary and financial policy not be further weakened," Mr. Weidmann said in a statement, referring to the network of European central banks.
During the years of his chairmanship, Greenspan became known for his decisive use of monetary policy in steering the economy between the hazards of inflation and recession.
This approach privileges the interaction between political principals and their supposed agents, central bankers; but Taming Japan's Deflation shows clearly that central bankers' views, shaped by ideas and institutions, can be decisive in determining monetary policy.
The report also mentioned that "heightened inflationary pressures will require more decisive tightening of monetary policies across much of emerging East Asia".
2.08pm BST Larry Elliott: ECB must heed the warning signs Our economics editor, Larry Elliott, writes that the ECB must show decisive action on Thursday by easing monetary policy.
WASHINGTON — With out anyone's planning it that way, this country is evident ly heading into another test, perhaps a decisive test, of (me of the great economic issues of our time — fiscal Mersus monetary policy.
The Federal Open Market Committee, which votes on monetary policy, has three open seats — a situation that may be hindering the taking of decisive action.
But I had already reformed monetary policy; and the stable monetary framework that he inherited, with the inflation target at its heart, was the decisive change.
That is monetary policy.
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Justyna Jupowicz-Kozak
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