Bosomworth Says ECB Will Not Specify Tapering End Date

The transcript discusses the European Central Bank's (ECB) approach to maintaining policy flexibility by not specifying an end date for its current measures. It explores the consensus on reducing asset purchases from 60 to 30 billion and the potential for a faster exit strategy due to strong global growth. The discussion also touches on the Phillips curve and the importance of setting a clear exit path before leadership changes in the ECB.

What is the ECB's strategy regarding the end date of their current monetary policy?

• Specify an end date immediately

• Reduce interest rates

• Maintain flexibility by not specifying an end date

• Increase asset purchases

What is the market's expectation for ECB rate hikes over the next five years?

• Three rate hikes totaling 50 basis points

• Five rate hikes totaling 75 basis points

• No rate hikes

• Ten rate hikes totaling 150 basis points

Why might the ECB consider a faster exit strategy?

• To decrease unemployment

• To increase inflation

• Because of strong global growth and changes in the Phillips curve

• Due to weak global growth

What is the relationship between unemployment and inflation known as?

• The Lorenz curve

• The Kuznets curve

• The Phillips curve

• The Laffer curve

What significant event is expected to occur at the ECB in October 2019?

• Increase in asset purchases

• Introduction of a new monetary policy

• Reduction in interest rates

• Retirement of Draghi