Lagarde: Core Inflation Remains 'Significantly Too High'

The video discusses the use of interest rates as a tool to combat inflation, highlighting the transition from negative to positive rates. It explains headline inflation, which includes all goods and services, and core inflation, which excludes volatile items like energy and food. The video also addresses the challenges of economic uncertainty due to geopolitical changes and market tensions, emphasizing the need for thorough analysis to understand price increases and adjust monetary policy accordingly.

What was the initial interest rate when the speaker started the job in November 2019?

• Plus 1.0%

• Minus 1.0%

• Plus 0.5%

• Minus 0.5%

What does the term 'basis points' refer to in the context of interest rates?

• A measure of inflation

• A method to calculate GDP

• A unit to express interest rate changes

• A type of financial instrument

What is included in the calculation of headline inflation?

• All goods and services including energy and food

• Only food and energy prices

• Only durable goods

• Only services

What is excluded from core inflation to make it less volatile?

• Technology and services

• Energy and food

• Labor costs and services

• Durable goods

What are some of the challenges mentioned in managing inflation?

• Technological advancements

• Geopolitical changes and financial tensions

• Population growth

• Natural disasters