ECB's Lagarde Sees Economy at Pre-Crisis Level by Year-End

The video discusses the economic recovery in Europe post-pandemic, highlighting the impact of high vaccination rates and the challenges posed by the Delta variant. It addresses inflation trends, noting that current increases are expected to be temporary, with long-term inflation remaining below the 2% target. The European Central Bank (ECB) maintains favorable financing conditions and outlines its measures, including asset purchases and interest rate policies, to support economic recovery and stabilize inflation.

What is the expected economic output by the end of the year?

• Exceed pre-pandemic levels

• Equal to pre-pandemic levels

• Unchanged from current levels

• Below pre-pandemic levels

What is a potential risk to the full reopening of the economy?

• High inflation rates

• The Delta variant

• Low consumer spending

• Decreased production

How is the current increase in inflation described?

• Permanent

• Temporary

• Rapidly increasing

• Stable

What is the projected medium-term inflation rate compared to the target?

• Unpredictable

• Below 2%

• At 2%

• Above 2%

What decision did the Governing Council make regarding asset purchases?

• Increase the pace

• Stop the purchases

• Maintain the current pace

• Reduce the pace