Monetary Policy Cant Achieve Everything: Lewis

The transcript discusses the divergence in monetary policy between the Federal Reserve and the European Central Bank, highlighting the healthier US economy and the ECB's challenges with low inflation. It covers the US economic growth trajectory, the limitations of monetary policy, and the shift in fiscal policy away from austerity. The discussion also touches on European economic challenges, the ECB's TLTRO, and the UK's decision to remain in the EU.

What is the main reason for the Federal Reserve to consider normalizing its policy?

• Due to the healthier US economy

• To decrease unemployment

• To align with the ECB

• To increase inflation

What is the expected GDP growth for the US in the third quarter?

• 4%

• 2%

• 1%

• 3%

Why is the ECB shifting away from strict fiscal policy objectives?

• To focus on monetary policy

• To reduce inflation

• To increase austerity measures

• To encourage public sector investment

What is the ECB's main tool for influencing the economy?

• Fiscal policy

• Monetary policy

• Tax reforms

• Trade agreements

What is a significant challenge for countries like Italy in the European economy?

• Excessive public sector investment

• High debt-to-GDP ratio

• Low GDP growth

• High inflation rates

What was the banks' response to the ECB's long-term refinancing operations?

• They borrowed more than expected

• They borrowed exactly as expected

• They borrowed less than expected

• They did not participate

What historical context is mentioned regarding Wales?

• Its independence from the UK

• Its disputes with England

• Its economic growth

• Its role in the EU