Trichet Says ECB Has the Right Policy Tools

The transcript discusses the European Central Bank's (ECB) focus on price stability and its mandate, comparing it to the US Federal Reserve. It highlights the ECB's use of unconventional tools like quantitative easing and negative rates, emphasizing the need for creativity in monetary policy. The discussion also touches on fiscal policy, suggesting that countries like Germany and the Netherlands have room to maneuver to foster economic balance and growth within the EU.

What is the primary focus of the ECB according to the first section?

• Price stability

• Job creation

• Dual mandate

• Inflation targeting

Which of the following is NOT a tool used by the ECB as mentioned in the second section?

• Negative interest rates

• Full allotment at fixed rates

• Quantitative tightening

• OMT

What is the main challenge for the ECB regarding its unconventional tools?

• Currency devaluation

• Timing of utilization

• High inflation

• Lack of tools

Which countries are highlighted for having fiscal space in the third section?

• France and Italy

• Spain and Portugal

• Germany and the Netherlands

• Greece and Ireland

What is the potential benefit of utilizing fiscal space in certain euro area countries?

• Increased inflation

• Improved economic balance

• Reduced exports

• Higher interest rates