ECB's Lagarde Says Short-Term Risk `Tilted to Downside'

The video discusses the economic uncertainty in the euro area due to extended lockdowns and slow vaccination progress. It highlights the European Central Bank's (ECB) role in providing certainty through monetary policy. The balance of risk remains tilted to the downside in the short term but is expected to become more balanced in the medium term as vaccination efforts improve.

What is a potential consequence of prolonged lockdowns in the euro area?

• Increased economic growth

• Rapid vaccination progress

• Businesses giving up

• Immediate economic recovery

What is the primary aim of the ECB's recent monetary policy decisions?

• To decrease interest rates

• To provide certainty

• To increase inflation

• To promote exports

In the context of the euro area's economic situation, what is the ECB's mandate?

• Trade balance

• Price stability

• Currency devaluation

• Job creation

What is the short-term risk outlook for the euro area according to the transcript?

• Balanced

• Upward

• Downward

• Neutral

What is expected to improve the medium-term risk balance in the euro area?

• Decreased monetary policy

• Higher inflation

• Herd immunity

• Increased lockdowns