ECB's QE Resumption Opposed by French, German, Dutch Governors

ECB's QE Resumption Opposed by French, German, Dutch Governors

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the European Central Bank's (ECB) decision to restart its bond purchasing program and cut rates, led by Mario Draghi. Despite overwhelming support, several Eurozone countries opposed the decision. The market reacted by buying euros and selling bonds, causing German yields to rise. The bond purchase program is set at €20 billion a month, lower than expected, but is open-ended, raising concerns about the 'japanification' of Europe.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What was the expected monthly amount for the bond purchasing program compared to what was announced?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What concerns did investors have regarding the open-ended nature of the bond purchase program?

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