ECB's Governing Council Member Visco on EU Inflation

The transcript discusses concerns about inflation, particularly in relation to energy prices and their impact on the economy. It explores the role of monetary policy and interest rate adjustments in managing inflation. The discussion includes the effects of core inflation and labor market conditions, emphasizing the importance of data dependency in economic decisions. The transcript also addresses the concept of terminal rates and real interest rates, highlighting the need for realistic economic policies to achieve a 2% inflation target in the medium term.

What is the main concern regarding the easing of inflation?

• The increase in non-energy prices

• The decrease in wage levels

• The lag effect of energy prices on inflation

• The immediate drop in energy prices

Why is it important to monitor core inflation closely?

• To ensure energy prices remain stable

• To prevent excessive wage increases

• To avoid deflation in the economy

• To maintain a 5% inflation rate

What is the target inflation rate mentioned in the discussion?

• 4%

• 3%

• 2%

• 1%

How are real interest rates currently described in the discussion?

• Below zero

• Negative

• Around zero

• Above 5%

What is the primary objective of the discussed monetary policy?

• To stabilize energy prices

• To increase wage levels

• To achieve a 3% inflation rate

• To return to a 2% inflation rate