Euro-area Inflation 'Undesirably High': ECB's Lagarde

The video discusses the challenges posed by ongoing inflation and the steps taken towards policy normalization. It outlines the end of net asset purchases and the planned increase in policy rates for the first time in 11 years. Guidance for future policy meetings is provided, emphasizing the commitment to stabilizing inflation at a 2% target over the medium term.

What is the main challenge discussed in the initial section regarding monetary policy?

• High unemployment rates

• Changing inflation outlook

• Currency devaluation

• Trade deficits

What significant action is planned for the first time in 11 years?

• Launching a new asset purchase program

• Introducing new currency

• Increasing policy rates

• Reducing interest rates

Which of the following actions will come to an end as part of the policy normalization?

• Fiscal stimulus

• Currency interventions

• Net asset purchases

• Interest rate hikes

What is the target inflation rate mentioned in the final section?

• 3%

• 2%

• 1%

• 4%

What is the ultimate goal of the normalization path discussed in the final section?

• Achieving a balanced budget

• Increasing employment rates

• Stabilizing inflation at 2%

• Reducing national debt