Was ECB Right to Keep Its Powder Dry?

The video discusses the expected extension of the ECB's bond-buying program and the challenges faced by central banks due to a shortage of paper in the secondary market. It highlights the ECB's past failures to deliver and the market's reaction to ECB decisions. The discussion also covers the limitations of monetary policy, the need for fiscal responses, and structural reforms in countries like Germany and Italy. Economic forecasts for the Eurozone are examined, noting stagnant inflation and declining domestic demand.

What was the expected duration for the extension of the ECB's bond-buying program?

• Three months

• Six months

• Nine months

• Twelve months

Which central bank figure is typically involved in delivering a keynote speech following ECB's announcements?

• Mario Draghi

• Viktor Constancia

• Peter Pratt

• Christine Lagarde

What was the market's reaction to Mario Draghi's statements despite the lack of immediate commitments?

• Immediate sell-off

• Increased volatility

• Loss of trust

• Continued trust

What is one reason for the low real interest rates globally, according to the transcript?

• Strong economic growth

• Increased government spending

• Excess savings

• High inflation

What is the main concern regarding the effectiveness of the QE program?

• It is too aggressive

• It is not working fast enough

• It is reducing savings

• It is causing high inflation