Ex-ECB's Constancio Says Negative Rates Shouldn't Be Overused

The video discusses the eurozone's economic challenges, including Brexit and the need for fiscal policy. It highlights the impact of negative interest rates on financial stability and the importance of fiscal measures. The US-China trade war's effect on global investment is examined, along with potential outcomes of a trade deal. The role and limitations of central banks in addressing economic downturns are also explored.

What is one of the main economic challenges currently facing the eurozone?

• High inflation rates

• Brexit

• Rising oil prices

• Increasing unemployment

Why is fiscal policy considered important for the eurozone's economic stability?

• To increase exports

• To counteract monetary policy

• To address economic slowdowns

• To reduce inflation

What is a potential risk of overusing negative interest rates?

• Increased inflation

• Financial instability

• Higher unemployment

• Stronger currency

What is the main global economic concern mentioned in relation to the US-China trade war?

• Rising commodity prices

• Slowing global investment

• Increasing trade barriers

• Currency devaluation

How might a US-China trade deal affect central banks?

• It would decrease inflation

• It would cause a surge in optimism

• It would increase unemployment

• It would lead to higher interest rates

What is a concern regarding central banks' ability to handle future economic downturns?

• Limited monetary policy tools

• Lack of independence

• High inflation rates

• Excessive fiscal spending

What role does fiscal policy play when monetary policy reaches its limits?

• It reduces government debt

• It stabilizes currency value

• It supports economic growth

• It controls inflation