Pantheon Economist Sees Inflation Rising in Euro Zone

The video discusses the eurozone's economic growth in 2017, driven by a broad-based recovery across major economies, with increased GDP growth, investment, and consumer spending. It compares this growth to pre-financial crisis levels in 2006. The outlook for 2018 suggests a slight increase in inflation and a decrease in growth, but the eurozone economy remains strong. The video highlights economic divergence within the eurozone, noting Spain's unemployment rate. It concludes with optimism about the sustainability of the expansion, emphasizing the ECB's focus on recovering from the financial crisis and sovereign debt crisis, particularly in peripheral economies.

What were the key factors contributing to the eurozone's economic growth in 2017?

• A decrease in government spending

• A rise in interest rates

• A broad-based recovery across major economies

• A significant increase in exports

What is the expected economic change in the eurozone for 2018?

• Inflation is expected to decrease

• Growth is expected to increase significantly

• The economy is expected to remain unchanged

• Inflation is expected to rise and growth to slow slightly

What is the current state of the eurozone economy according to the 2018 outlook?

• It is stagnant

• It is declining rapidly

• It is experiencing a strong upturn

• It is in a recession

What is a major concern for policymakers in the eurozone?

• The decrease in consumer spending

• The legacy costs of the financial crisis

• The high inflation rates

• The German economy running hot

What is the focus of the ECB regarding the eurozone's economic recovery?

• Ensuring recovery from the financial crisis in peripheral economies

• Increasing interest rates

• Reducing government debt

• Boosting the German economy further