SNB President Jordan Sees Downside Risk in Italy

The transcript discusses the current economic risks, focusing on downside risks in Europe, particularly Italy, and the impact on financial markets. It explores the challenges central banks face in normalizing policies, especially between advanced economies and emerging markets, and the potential effects on capital flows and exchange rates. The discussion also covers the inflation outlook, noting a temporary rise due to oil prices but a decrease in long-term inflationary pressure, affecting monetary policy decisions. Finally, it highlights the importance of maintaining an autonomous monetary policy while considering international factors.

What is one of the main risks identified in Europe that affects financial markets?

• Political uncertainty in Italy

• Decreasing oil prices

• High inflation rates

• Rising unemployment

How can changes in monetary policy in advanced economies impact emerging markets?

• By stabilizing their currencies

• By influencing capital flows and exchange rates

• By reducing their export demands

• By increasing their interest rates

Why has the inflation outlook been lowered according to the transcript?

• Due to a rise in interest rates

• Due to a permanent decrease in oil prices

• Because of temporary factors affecting short-term inflation

• As a result of increased global demand

What is the primary goal of an autonomous monetary policy as mentioned in the transcript?

• To control foreign exchange markets

• To reduce interest rates

• To maintain price stability

• To increase export demand

What role does international demand for exports play in monetary policy decisions?

• It determines the level of interest rates

• It influences the need for foreign exchange interventions

• It has no significant impact

• It is the sole factor in policy decisions