Davos 2018: Generation gap must be addressed, says Lagarde

Europe's youth risk being left behind unless the European Union takes steps to address the growing income divide across generations, says IMF managing director Christine Lagarde.

At Davos, Lagarde said: “Working-age people, especially the young, are falling behind. Without action, a generation may never be able to recover.”

Meanwhile, US treasury secretary Steven Mnuchin insisted the Trump administration’s America First policies were also good for the rest of the world. Mnuchin said: “This is about an America First agenda, but America First does mean America working with the rest of the world.” He argues a weaker dollar is good for trade, at least in the short term. Most administrations tend to argue for a strong dollar.

He added: “A weaker dollar is good for us as it relates to trade and opportunities. Longer term, the strength of the dollar is a reflection of the strength of the US economy and that it is, and will continue to be, the primary reserve currency”.