Stiglitz on Central Banks Call for More Fiscal Policy

The video discusses the impact of government changes on fiscal policy, the role of central banks in supporting fiscal plans, and the importance of coordination between monetary and fiscal authorities. It also examines the implications of Brexit on trade, potential trade agreements, and the future of the EU. The discussion highlights the need for flexible exchange rates and balanced trade regimes.

What is one of the main challenges faced by liberal governments in the Eurozone?

• High inflation rates

• Failing their electorates

• Lack of technological advancement

• Excessive government spending

Why might central banks need to coordinate with fiscal authorities?

• To enforce austerity measures

• To reduce government debt

• To support economic growth

• To increase interest rates

How did the European Central Bank act during the Greek financial crisis?

• As a supporter of Greek policies

• As an enforcer of Troika policies

• As a lender of last resort

• As a neutral observer

What is a potential benefit for Britain after leaving the EU?

• Increased political isolation

• More favorable trade deals

• Stronger currency value

• Higher tariffs on exports

What role does exchange rate flexibility play in international trade?

• It increases tariff levels

• It stabilizes currency value

• It offsets tariff impacts

• It reduces trade volume