ECB Can Go Further - Bruegel Director Wolff

The video discusses Mario Draghi's response to economic conditions, focusing on his monetary policy aimed at targeting eurozone inflation without engaging in competitive devaluation. It highlights the global economic implications of such policies, including potential stimulus on both sides of the Atlantic. The video also explores the legal and political challenges faced by the ECB in implementing quantitative easing and addresses Italy's fiscal challenges, emphasizing the need for structural reforms to enhance productivity and economic recovery.

What was President Trump's main concern regarding Mario Draghi's potential stimulus measures?

• The effect on US inflation

• The rise in global oil prices

• The impact on the euro's value

• The increase in European unemployment

What is the main reason Mario Draghi feels the need to react with stimulus measures?

• Pressure from the US government

• High unemployment rates

• Uncertainty in the global economy

• Rising inflation in the eurozone

What does the speaker suggest is the 'only game in town' given the current economic challenges?

• Trade agreements

• Monetary policy

• Fiscal austerity

• Technological innovation

What legal authority does the European Court of Justice provide to the ECB regarding quantitative easing?

• A broad mandate

• A limited mandate

• No mandate

• A conditional mandate

What is the main political challenge in expanding the ECB's asset purchase program?

• Concerns from Northern European countries

• Opposition from Southern European countries

• Resistance from the European Commission

• Lack of support from the European Parliament

What is the primary factor limiting Italy's fiscal space according to the speaker?

• Strict fiscal rules

• Market pressure

• Low productivity

• High inflation

What does the speaker suggest Italy needs to focus on to improve its fiscal situation?

• Increasing taxes

• Expanding its monetary policy

• Reducing public spending

• Implementing structural reforms