ECB's Draghi Faces Inflation Policy Dilemma

The video discusses the ECB's stance on economic recovery, inflation, and quantitative easing. It highlights the muted inflation levels and the ECB's mandate to reach its target. The discussion includes expectations for inflation, growth outlook, and potential tapering of bond purchases. The ECB is cautious about moving too quickly towards normalization, with a possible change in language expected in June. Tapering is anticipated to start in January, with quantitative easing ending by mid-next year.

What is the ECB's primary mandate concerning inflation?

• To maintain inflation at current levels

• To keep inflation at 0%

• To reduce inflation to negative levels

• To bring inflation up to its target

What external factors are contributing to the expected drop in inflation?

• Higher interest rates

• Commodity price shifts and holiday timing

• Increased government spending

• Decreased consumer spending

What is the 'supercore' inflation rate mentioned in the video?

• 3.0%

• 0.9%

• 2.0%

• 1.5%

What change in language is expected in the ECB's June statement?

• A shift from balanced to upside risks

• A shift from downside to balanced risks

• A shift from balanced to skewed risks

• No change in language

When is the ECB expected to announce tapering of bond purchases?

• In June

• In March

• In September

• In December