Trichet Says Danger of Deflation Is 'Totally Over'

The transcript discusses the European Central Bank's (ECB) dovish stance, highlighting the absence of an end date for quantitative easing (QE) programs. It argues that the ECB's policies have been successful, with a robust economy and manageable inflation expectations. The danger of deflation is considered over, and the ECB plans to start tapering next year. The decision to taper is seen as justified, and future decisions will be based on data collected over time.

What is a potential downside of the ECB's dovish approach?

• It might delay economic recovery.

• It could lead to higher inflation.

• It could become more harmful than beneficial.

• It may strengthen the euro.

Which aspect of the economy is highlighted as surprisingly robust?

• The housing market

• The labor market

• The real economy

• The stock market

What is the ECB's outlook on deflation?

• Deflation is not considered in their policy.

• Deflation is expected to return.

• Deflation is no longer a threat.

• Deflation is a growing concern.

What is the ECB's stance on tapering?

• It is a justified decision.

• It is an unjustified decision.

• It is a dovish decision.

• It is a decision to increase QE.

How will the ECB make future decisions regarding its policy?

• By following other central banks

• By analyzing data over time

• By maintaining the current policy indefinitely

• Based on political pressure