Moec: Helicopter Money Still Far Away for Eurozone

The transcript discusses the ECB's dovish stance post-Brexit, focusing on inflation forecasts and the necessity of continuing quantitative easing (QE) despite challenges like bond scarcity in Germany. It explores the potential for negative interest rates and technical tweaks to QE, while highlighting the improved relationship between the Bundesbank and ECB. The UK economy's resilience post-Brexit vote is also examined, noting low unemployment and the debate over interest rate hikes.

What is one of the main challenges the central bank faces in continuing QE?

• Strong economic growth

• High inflation rates

• Lack of bonds to purchase, especially in Germany

• Excessive government spending

Why are negative deposit rates considered problematic for banks?

• They increase inflation

• They are beneficial for banks

• They make recovery difficult when banks are struggling

• They lead to higher interest rates

What is the relationship between the Bundesbank and the ECB described as?

• Better now despite past criticisms

• Completely aligned

• Unchanged over the years

• Worse than ever

What has been the impact of the Brexit vote on UK unemployment?

• Unemployment has increased significantly

• There has been no sharp slowdown

• Unemployment has decreased to record lows

• The labor market has collapsed

What is a notable observation about the UK labor market post-Brexit?

• There is a surplus of jobs

• It has led to high inflation

• Wages have decreased significantly

• The Phillips curve is not functioning as expected