Lagarde Says Europe's Economic Recovery Has Been Tepid

The transcript discusses the severe economic contraction caused by the coronavirus pandemic, highlighting job and income losses, reduced consumer spending, and investment. It notes some signs of economic stabilization as containment measures ease, but recovery remains slow. Macroeconomic projections indicate a significant decline in growth, with a potential rebound aided by fiscal and monetary support. Inflation is expected to stay low due to decreased energy prices and increased economic slack. The Governing Council is committed to ensuring effective monetary policy across sectors and countries.

What was one of the main causes of the significant drop in consumer spending during the pandemic?

• Increased government spending

• Severe job and income losses

• Rise in energy prices

• Improved economic outlook

How did the economic indicators behave as containment measures were gradually eased?

• They continued to decline

• They remained unchanged

• They showed rapid improvement

• They showed some signs of bottoming out

According to the Euro system staff projections, when is economic growth expected to rebound?

• In the first quarter of the year

• In the second half of the year

• In the last quarter of the year

• In the third quarter of the year

What is one reason for the subdued price pressures mentioned in the transcript?

• Increase in consumer spending

• Sharp decline in real GDP

• Decrease in economic slack

• Rise in energy prices

What is the Governing Council's commitment in response to the economic situation?

• To halt monetary policy transmission

• To increase taxes

• To reduce government spending

• To ensure monetary accommodation