Visco: Flexibility Should Remain Part of ECB's Toolkit

The transcript discusses the European Central Bank's (ECB) approach to flexibility in its asset purchase programs, particularly the Pandemic Emergency Purchase Programme (PEP). It highlights the benefits of flexibility in responding to emergencies and maintaining economic stability. The discussion also touches on future considerations, such as potentially raising the limit on debt purchases from international bodies, with decisions expected in December. The ECB's Governing Council remains open to adapting based on economic developments.

Why does the speaker believe flexibility has been successful in the ECB's approach?

• It has reduced the need for meetings.

• It has increased the ECB's profits.

• It has helped manage emergencies effectively.

• It has allowed for better communication.

What is one of the main goals the ECB aims to achieve with flexibility?

• To increase interest rates.

• To reach a 2% inflation target.

• To reduce unemployment to 1%.

• To double the GDP growth rate.

How does flexibility help in preventing fragmentation according to the speaker?

• By increasing the number of financial institutions.

• By stabilizing the currency exchange rates.

• By addressing unexpected shocks and maintaining unity.

• By reducing the number of regulations.

What is the ECB considering regarding debt purchases from international bodies?

• Reducing the limit of purchases.

• Eliminating purchases altogether.

• Maintaining the current limit.

• Raising the limit of purchases.

When is the ECB expected to make a decision on the limit of debt purchases?

• In November.

• In December.

• In January.

• In February.