Bruegel's Papadia Sees Central Bank Independence Threats

The video discusses the expanded roles of central banks during crises, focusing on the ECB. It highlights the shift from technical to political discretion and the resulting tensions. The need for adaptations in central banking, particularly regarding financial stability, is explored. The ECB's tapering plans and inflation projections are also covered, emphasizing the challenges in achieving the 2% inflation target.

What was the primary responsibility of central banks before the crisis?

• Economic growth

• Political decision-making

• Price stability

• Financial stability

What new objective became important for central banks after the crisis?

• Trade balance

• Currency exchange rates

• Financial stability

• Employment rates

How should central banks handle conflicts between price stability and financial stability?

• Prioritize financial stability

• Consult with the government

• Seek guidance from Parliament

• Focus on price stability

When is the ECB expected to start tapering according to the discussion?

• Immediately

• In 2020

• After achieving 2% inflation

• Before the set date

What has been the issue with the ECB's inflation projections?

• They have been too optimistic

• They have been accurate

• They have been too pessimistic

• They have been ignored