A Deep Dive Into 2017 European Growth, Inflation

The video discusses eurozone inflation, highlighting the lack of core inflation growth despite potential strong eurozone inflation. It examines German inflation, influenced by oil prices and erratic elements like package holidays. The video explores wage dynamics in Germany, noting subdued wage growth despite low unemployment. It concludes with an analysis of recession risks in Europe, emphasizing the need for fiscal discipline and the impact of external demand on economic stability.

What is the main reason for the lack of core inflation in the eurozone?

• High energy prices

• Stable oil prices

• Increased consumer spending

• Strong wage growth

How have nominal wages in Germany been affected by low inflation in recent years?

• They have decreased significantly

• They have grown at a steady pace

• They have remained stagnant

• They have fluctuated unpredictably

What factor has contributed to the German labor movement's cautious approach to wage demands?

• High unemployment rates

• Strong economic growth

• Government intervention

• Need to maintain competitiveness

What is the expected GDP growth for Europe in 2017 according to the transcript?

• 2.5%

• 0.8%

• 1.4%

• 2.0%

Which external factor is expected to help balance domestic demand in Europe?

• Increased government spending

• Rising oil prices

• Higher interest rates

• Improved trade with China and the US