ECB's QE Pledge Said Facing Policy Maker Challenge

The transcript discusses the internal dissent within the ECB regarding inflation threats and the challenges faced by central banks globally. It highlights the Bank of England's approach to inflation based on growth constraints and the importance of open-ended quantitative easing to ensure market confidence and achieve inflation and growth targets.

What is the main issue causing dissent within the ECB?

• The potential threat of inflation exceeding targets

• The need for more quantitative easing

• The lack of economic growth

• The high unemployment rates

How did the Bank of England respond to potential growth constraints?

• By implementing new taxes

• By increasing interest rates

• By cutting government spending

• By reducing interest rates

What challenge is highlighted regarding inflation targets?

• Inflation targets are consistently met

• Inflation targets are too low

• Inflation targets are often missed on the upside

• Inflation targets are irrelevant

What is necessary for quantitative easing to be effective?

• It should be temporary

• It should be open-ended

• It should be limited to certain sectors

• It should be announced annually

What is the ultimate goal of using unconventional measures?

• To reduce government debt

• To achieve desired inflation and growth levels

• To stabilize currency exchange rates

• To increase unemployment