Could EU Inflation Bolster Draghis Calls for QE?

The video discusses the expectation of inflation coming in at negative 0.1%, indicating potential deflation. This could prompt Mario Draghi to start quantitative easing by purchasing government bonds. Upcoming events include consumer confidence data, an ECB meeting on January 22nd, and Greek elections on January 25th. The German argument suggests that lower oil prices are stimulating the economy, despite driving down headline inflation. Recent data shows inflation at 0.11% in Germany, with negative figures in Greece and Spain.

What economic tool might Mario Draghi consider using if deflation occurs?

• Quantitative easing

• Interest rate hikes

• Currency devaluation

• Tax increases

What event is scheduled to occur on January 22nd?

• Greek elections

• European Central Bank meeting

• Release of consumer confidence data

• German press conference

What is the German argument regarding the impact of lower oil prices?

• They think it will have no significant impact on the economy.

• They believe it will lead to higher core inflation.

• They suggest it will only benefit the oil industry.

• They argue it will stimulate the economy despite lower headline inflation.

How do lower oil prices affect headline inflation according to the German perspective?

• They increase headline inflation.

• They have no effect on headline inflation.

• They drive down headline inflation.

• They stabilize headline inflation.

Which economic indicator is closely watched in Germany, Greece, and Spain?

• Trade balance

• GDP growth

• Unemployment rate

• Inflation rate