Trichet Says Global Slowdown Obvious, Central Banks Can't Be Only Game in Town

The video discusses market expectations regarding the European Central Bank (ECB) and its potential actions, highlighting the independence and credibility of central banks. It addresses the global economic slowdown, particularly in the US and Europe, and debates the roles of monetary and fiscal policies. The video emphasizes the need for shared responsibility among various economic actors, including governments and the private sector, to address economic challenges and avoid low inflation traps.

What is one reason the market expects the ECB to take action?

• The ECB is following government directives.

• The ECB's President has communicated clearly.

• The ECB has already implemented new policies.

• The market is stable and predictable.

What are some factors contributing to the ECB's difficult decision-making environment?

• Increasing inflation and strong US economy.

• High consumer confidence and Brexit.

• Volatile markets and global economic slowdown.

• Stable global economy and Brexit.

How does the economic slowdown in the US compare to that in Europe?

• The US is experiencing a faster slowdown.

• Europe is experiencing a faster slowdown.

• Both are experiencing a similar magnitude of slowdown.

• Neither is experiencing a slowdown.

What is suggested as a necessary approach to address low inflation?

• Focus only on monetary policy.

• Involve multiple economic partners.

• Increase taxes across Europe.

• Rely solely on central banks.

What is the broader problem beyond the central bank's role?

• A single entity problem.

• A wider problem involving all economic partners.

• A problem only affecting the private sector.

• A temporary issue with no long-term impact.