ECB's Visco: Cannot Stay With Negative Rates Forever

The transcript covers discussions on quantitative easing (QE), inflation projections, and market expectations. It highlights the potential risks associated with these projections and the impact of negative interest rates on banks and the broader economy. The conversation also delves into various economic policies and theories, examining their potential effects on Europe. The discussion is led by the governor of Bank Italia, who provides insights into the current economic climate and the challenges faced by financial institutions.

What is the projected inflation rate for 2018 according to the ECB?

• 2.0%

• 0.8%

• 1.6%

• 1.2%

What is one of the main concerns associated with negative interest rates?

• Increased inflation

• Decreased bank profitability

• Higher oil prices

• Rising wage levels

How have falling interest rates affected bank funding costs?

• Increased volatility

• Made them less expensive

• Had no effect

• Made them more expensive

What is a potential long-term benefit of negative interest rates?

• Recovery of credit demand

• Increased pension fund returns

• Higher insurance premiums

• Decreased inflation expectations

What is a key focus in monitoring economic policies according to the final section?

• Inflation expectations

• Interest rate hikes

• Oil price fluctuations

• Wage increases