Euro-Area Inflation Remains Negative

The video discusses the European Central Bank's (ECB) upcoming inflation forecasts, expected to be higher than previous ones, marking a positive shift. However, achieving the 2% inflation target remains challenging, with current projections at 1.6% by 2018. The ECB's policies, including low rates and a weaker euro, have positively impacted the German economy, boosting consumer spending and reducing unemployment. Despite these benefits, skepticism persists in Germany due to low returns on savings. The ECB's ability to raise rates hinges on reaching its inflation goals, which is still a distant prospect.

What is the expected inflation rate in the eurozone by 2018 according to the ECB?

• 1.6%

• 2.0%

• 1.2%

• 3.0%

Why is it important for wages and service prices to rise in the euro area?

• To increase exports

• To stabilize and sustain inflation

• To reduce unemployment

• To lower interest rates

Which countries are mentioned as needing to reduce their debt levels?

• Portugal and Ireland

• Italy and Greece

• Germany and Netherlands

• France and Spain

What factors are attributed to the success of the German economy?

• High consumer spending and high unemployment

• Low rates and structural reforms

• High inflation and strong euro

• Weak exports and high savings

What is the sentiment in Germany towards the ECB's policies?

• Skeptical due to low returns on savings

• Supportive due to high interest rates

• Optimistic due to high returns on savings

• Indifferent due to stable inflation