ECB’s Wunsch: Inflation Spike Temporary in Nature

The transcript discusses concerns about the ECB's guidance on interest rates and inflation. It explores whether current inflation is temporary or has lasting effects, emphasizing the need for supportive monetary policy. The discussion includes the potential end of the pandemic emergency program (PEP) and the return to traditional tools with added flexibility. The importance of coordination between fiscal and monetary policies is highlighted, along with the need for flexibility and vigilance in future economic challenges.

What is the speaker's stance on the need for flexibility in economic policy?

How does the speaker describe the current economic situation in Europe?

What does the speaker suggest about the relationship between monetary and fiscal policies?