Central Banks Should Be 'Very Watchful' on Inflation Expectations: BIS

The video discusses the economic outlook for the next 6 to 12 months, highlighting the progress and challenges faced by advanced and emerging economies. It addresses inflation concerns, emphasizing that current inflation is not problematic but requires central banks to be vigilant. The role of fiscal policy in economic recovery is explored, noting the importance of continued fiscal support. The video also examines central banks' involvement in addressing inequality and climate change, and the potential for digital currencies to become widespread.

What is a key factor that differentiates the economic progress of advanced economies from emerging markets in the next 6 to 12 months?

• Geographical location

• Cultural differences

• Access to technology

• Fiscal and monetary policy space

What is a potential consequence of advanced economies growing rapidly?

• Lower inflation rates

• Higher global financial conditions

• Decreased global trade

• Increased unemployment

What is the primary reason for the expected increase in measured inflation according to the report?

• Government spending

• Rising oil prices

• Supply chain difficulties and base effects

• Increased consumer demand

What is a concern for central banks when it comes to inflation expectations?

• They could lead to deflation

• They might become unanchored

• They are too high

• They are too low

How do central banks primarily support income distribution?

• Through monetary policy

• By setting interest rates

• By directly redistributing wealth

• By ensuring financial stability

What is a significant challenge for central banks in addressing climate change?

• Lack of public support

• Insufficient financial resources

• Absence of appropriate instruments

• Political opposition

What is the expected role of central banks in the development of digital currencies?

• To replace traditional banks

• To regulate private cryptocurrencies

• To eliminate cash transactions

• To offer Central Bank Digital Money at the retail level