Will the ECB See Evidence for More Stimulus?

The transcript discusses the European Central Bank's (ECB) strategies to tackle inflation in the eurozone, highlighting a newfound urgency. It explores the ECB's options for bond purchasing, including sovereign and corporate bonds, and the potential resistance within the Governing Council. The role of national governments in implementing structural reforms is also examined, emphasizing the slow progress in liberalizing labor markets. Additionally, the transcript analyzes the ECB's long-term lending programs, questioning their effectiveness in increasing lending to European corporations.

What is the new sense of urgency for the ECB regarding inflation?

• To act by the first quarter of next year

• To increase interest rates

• To wait for two more years

• To focus on corporate bonds

Which type of bonds did the ECB Vice President specifically mention as an option?

• Corporate bonds

• Municipal bonds

• Sovereign bonds

• Green bonds

Why is the ECB considered the 'only game in town'?

• Due to its focus on environmental policies

• Because it controls all European banks

• Due to slow governmental reforms

• Because of its large financial reserves

What is the expectation for the second round of LTRO?

• It will attract more demand than the first

• It will be canceled

• It will likely not attract more demand

• It will definitely succeed

What is the potential impact of a bad LTRO figure?

• It would have no impact

• It would lead to higher interest rates

• It would increase the probability of buying sovereign debt

• It would decrease the probability of buying sovereign debt