Markets Count on Draghi to Extend ECB's QE Program

The transcript discusses the European Central Bank's (ECB) monetary policy, focusing on the extension of the quantitative easing (QE) program, its impact on markets, and the challenges faced by the ECB. It highlights the expected continuation of QE at €80 billion per month, the potential for tapering in the future, and the need for fiscal support from European governments. The effectiveness of QE is debated, with concerns about political risks and the slow pace of economic recovery. The ECB's policies are seen as broadly effective, but inflation remains a concern.

What is the expected duration of the ECB's quantitative easing extension?

• Six months

• Eighteen months

• Nine months

• Twelve months

What is one of the potential changes to the ECB's bond-buying program?

• Eliminating the bond reinvestment

• Introducing new currency bonds

• Reducing the monthly purchase amount

• Increasing the limit from 33% to 50%

What is a significant challenge faced by the ECB in maintaining the effectiveness of its policies?

• Excessive economic growth

• Lack of political and fiscal support

• Overvaluation of the Euro

• High inflation rates

Which country is mentioned as needing structural reforms to support the ECB's efforts?

• Portugal

• Spain

• Italy

• France

What is the ECB's main concern regarding inflation?

• Inflation is stable and predictable

• Inflation is causing economic overheating

• Inflation is not picking up on an underlying basis

• Inflation is rising too quickly