ECB’s Lagarde Says Europe Needs a New Policy Mix So Economy Can Thrive

The video discusses how investing in productive areas can boost economic growth and maintain competitiveness. It addresses global challenges with common solutions and introduces a new European policy mix. The focus is on monetary policy, which will undergo a strategic review to support the economy and respond to future risks while monitoring side effects.

What is the primary benefit of investing in productive areas of the economy?

• It solely focuses on domestic issues.

• It reduces global challenges.

• It increases short-term demand only.

• It helps in maintaining long-term competitiveness.

What is the speaker's perspective on addressing common global challenges?

• They should be ignored.

• They are not significant.

• They require individual solutions.

• They need common solutions.

What is the first element of the new European policy mix mentioned?

• Monetary policy

• Environmental policy

• Fiscal policy

• Trade policy

What is the role of the accommodative monetary policy stance?

• To decrease domestic demand

• To ignore future risks

• To drive domestic demand during recovery

• To focus on international trade

What does the ECB's forward guidance emphasize?

• Supporting the economy and responding to future risks

• Reducing domestic demand

• Ignoring price stability

• Focusing solely on international policies