Italy's Visco Says ECB Has Firepower to Deal With Possible Crisis

The video discusses the increased pessimism about the global economy, focusing on trade and geopolitical concerns. It highlights the challenges faced by central banks, particularly in Europe, in dealing with potential crises. The debate over monetary policy, including negative interest rates and asset purchases, is explored. The impact of these policies on banks and the broader economy is also examined.

What is the main reason for the increased pessimism about the world economy?

• Rising inflation rates

• Downward trend in trade

• Technological advancements

• Increase in global employment

Which regions are mentioned as contributing to the geopolitical risks affecting the economy?

• North America and Africa

• Australia and Antarctica

• Asia and South America

• Brexit and the Middle East

What is suggested as a better approach for central banks to handle economic crises?

• Increasing interest rates

• Implementing a policy mix with fiscal policy

• Reducing government spending

• Focusing solely on monetary policy

What is a concern regarding the use of negative interest rates?

• They may affect bank profits and loans

• They increase inflation

• They lead to higher unemployment

• They cause currency devaluation

How does the European Central Bank handle internal disagreements on monetary policy?

• Through a civilized internal debate

• By following a strict majority rule

• By ignoring dissenting opinions

• By consulting external experts