Raposo: Financial Stability Is Key for Inflation

The video explores the relationship between financial and price stability, emphasizing their interdependence. It highlights recent economic conditions in the Euro area, noting a decrease in inflation rates. The discussion shifts to Portugal's financial stability, where no significant concerns are observed. The video concludes with a discussion on the potential for cross-border mergers in the banking sector, following recent events involving SVB and Credit Suisse.

What is the relationship between financial stability and price stability?

• They are completely independent of each other.

• Financial stability is necessary for price stability.

• Price stability is more important than financial stability.

• They oppose each other.

What recent economic events are central banks focusing on?

• The rise of cryptocurrency.

• The growth of the tech industry.

• The economic turmoil in the US and Switzerland.

• The decline in global trade.

What is the current state of the Portuguese banking sector?

• It is showing signs of instability.

• It is heavily reliant on foreign investment.

• It is experiencing rapid growth.

• It is stable with strong capitalization and liquidity.

How are Portuguese banks supervised?

• They are not supervised.

• Only by the European Central Bank.

• By the European Central Bank and local authorities.

• By international financial institutions.

Are cross-border mergers currently a focus for central banks?

• Yes, they are a top priority.

• No, they are not currently a focus.

• Yes, but only in the US.

• No, they are considered unnecessary.