IMF's Obstfeld Praises Turkish Economic Response to Coup

The transcript discusses the cautious approach of central banks like the Fed, Bank of Japan, and ECB in response to global economic risks, including Brexit. It highlights the potential for lower interest rates and the impact of Brexit on the UK and global economy. The discussion also covers currency volatility and the role of central banks in maintaining economic stability. Additionally, it examines Turkey's economic response following a coup attempt, emphasizing the central bank's efforts to stabilize financial markets.

What is one potential action the Bank of England might take in response to Brexit?

• Introduce a new currency

• Lower interest rates

• Increase interest rates

• Implement quantitative easing

Why did the global growth forecast only decrease by 0.1% despite significant changes in the UK?

• Other countries are unaffected by Brexit

• The UK economy is not significant enough

• The forecast was made before Brexit

• Brexit's impact is expected to be moderate globally

What is a key role of central banks in times of currency volatility?

• Reduce government spending

• Increase taxes

• Maintain economic growth and stability

• Fix exchange rates

How did Turkey's central bank respond to stabilize the economy after the attempted coup?

• Closed the stock market

• Increased interest rates

• Provided liquidity to the financial system

• Devalued the currency

What factor is likely to drive Turkey's economic developments following the attempted coup?

• International trade agreements

• Political events

• Natural resources

• Tourism industry