IMF's Obstfeld: Need 'Policy Punch' to Get Economy Moving

The video discusses the global economic outlook, focusing on the need for strong, sustainable growth. It highlights the challenges of slow trade growth, protectionism, and the need for fiscal policy support. The impact of the global financial crisis is examined, along with the risks of low interest rates and deflation. The discussion also covers currency concerns, particularly in the context of Brexit and its effects on the UK economy.

What is the primary focus of the policy package discussed in the first section?

• Demographic trends

• Monetary policy

• Fiscal policy

• Trade agreements

What is the role of fiscal policy in supporting monetary policy as discussed in the first section?

• To replace monetary policy

• To compete with monetary policy

• To aid monetary policy

• To ignore monetary policy

What are some of the scarring effects of the global financial crisis mentioned in the second section?

• Non-performing loans and high debt

• Improved productivity

• Increased trade agreements

• Decreased fiscal policies

What demographic trend is mentioned as a challenge for investment and growth?

• Rural migration

• Aging population

• Increasing birth rates

• Urbanization

According to the third section, what is needed to escape the interest rate trap?

• More monetary policy

• Increased protectionism

• Higher interest rates

• More economic growth

What is a significant risk for the US economy discussed in the fourth section?

• Stronger dollar

• Weaker euro

• Higher inflation

• Increased trade barriers

What economic challenge is highlighted for the UK in the context of Brexit?

• High inflation

• Stable currency

• Large current account deficit

• Strong inward investment