Draghi: Scope of ABS Purchases Is ÷Rather Large

The video discusses the European Central Bank's (ECB) securities purchase program, which aims to expand the ECB's balance sheet by about a trillion euros. However, the program's specifics remain vague, with terms like 'sizable' being used instead of precise targets. The ECB is also stepping into a new supervisory role, focusing on regulatory harmonization across the euro area. Challenges include addressing a capital gap and ensuring credit supply to businesses. The ECB's efforts are seen as a significant integration step since the euro's introduction.

What is the expected expansion of the ECB's balance sheet according to the securities purchase program?

• 200 billion euros

• 1 trillion euros

• 5 billion euros

• 500 billion euros

Which type of securities is the ECB expected to purchase the most under the program?

• Agency debt

• Sovereign debt

• Asset-backed securities

• Covered bonds

What is considered the biggest integration step in the euro area since the euro's introduction?

• Expansion of the ECB's balance sheet

• Single supervisory mechanism

• ECB's new monetary policy

• Harmonization of regulations

What is one of the main challenges mentioned in the ECB's new role?

• Reducing inflation

• Plugging the capital gap

• Expanding the balance sheet

• Increasing interest rates

What is the main issue with credit supply according to the third section?

• Strict lending regulations

• Incentives for banks to lend

• High interest rates

• Lack of available credit