Weidmann: Virus to Hit German Growth But No Need for ECB Action

The transcript discusses the potential economic recovery from the coronavirus, focusing on whether it will be V-shaped. It explores the role of monetary policy in addressing supply and demand shocks, and the effectiveness of interest rate cuts. The conversation also highlights supply chain challenges and the need for fiscal policy instruments to address these issues.

What type of economic recovery is most likely according to the baseline scenario discussed?

• W-shaped recovery

• U-shaped recovery

• V-shaped recovery

• L-shaped recovery

What is a key consideration when deciding on monetary support during the pandemic?

• The level of government debt

• The effectiveness of interest rate cuts

• The amount of foreign investment

• The number of banks in the country

What is one of the main challenges faced by monetary policy in the current economic situation?

• Supply and demand shocks

• High inflation rates

• Currency devaluation

• Trade deficits

Which policy instruments are suggested for dealing with supply side shocks?

• Environmental policy instruments

• Trade policy instruments

• Fiscal policy instruments

• Monetary policy instruments

Who should primarily address the debate on handling supply side shocks?

• International organizations

• Central bankers

• Fiscal policymakers

• Environmental agencies