How Effective Is What’s Left in ECB's Toolbox?

The transcript discusses the European Central Bank's (ECB) potential actions regarding asset purchases and rate cuts, based on a Bloomberg survey. It examines inflation expectations, particularly the five-year forward inflation swap, and its correlation with commodity prices. The effectiveness of ECB's monetary policy is questioned, noting that initial measures are more impactful than subsequent ones. The discussion also touches on the euro's role as a secondary instrument and the need for policy flexibility to address economic risks.

What percentage of economists expect asset purchases to be expanded according to the Bloomberg survey?

What is the estimated amount by which asset purchases might be increased?

What are the risks associated with the ECB's actions on asset purchases?

How does the five-year forward inflation swap relate to commodity prices?

What measures could the ECB take to signal policy flexibility?