ECB's Draghi Faces Inflation Policy Dilemma

The video discusses the ECB's stance on economic recovery, inflation, and quantitative easing. It highlights the muted inflation levels and the ECB's mandate to reach its target. The discussion includes expectations for inflation, growth outlook, and potential tapering of bond purchases. The ECB is cautious about moving too quickly towards normalization, with a possible change in language expected in June. Tapering is anticipated to start in January, with quantitative easing ending by mid-next year.

What is the current stance of the ECB regarding inflation and its target?

What factors are contributing to the expected drop in inflation according to the text?

How does the ECB's target for inflation relate to the supercore measure mentioned?

What changes in language regarding growth outlook does the market expect from the ECB?

What is the anticipated timeline for the ECB to begin tapering its bond purchases?