Draghi Says Inflation Will Continue Convergence After Buying Ends

The video discusses the euro area's economic expansion, driven by domestic demand despite softer external demand and specific country and sector factors. It highlights uncertainties from geopolitical issues, protectionism, and market volatility. The need for significant monetary policy stimulus to support inflation convergence is emphasized, with the ECB's forward guidance and asset reinvestments providing necessary monetary accommodation. The Governing Council is prepared to adjust its instruments to ensure inflation aligns with its targets.

What underpins the euro area expansion despite softer external demand?

• Decreased inflation

• Increased government spending

• Strength of domestic demand

• Higher interest rates

Which of the following is NOT mentioned as a source of uncertainty affecting the economy?

• Geopolitical factors

• Technological advancements

• Emerging market vulnerabilities

• Protectionism

Why is significant monetary policy stimulus still needed?

• To decrease government debt

• To reduce unemployment

• To support domestic price pressures

• To increase foreign investments

What does the ECB's forward guidance on interest rates aim to provide?

• A reduction in government spending

• A decrease in inflation

• Monetary accommodation for inflation convergence

• An increase in foreign exchange reserves

What is the Governing Council prepared to do to ensure inflation moves towards its aim?

• Cut public spending

• Increase taxes

• Reduce interest rates

• Adjust its instruments