UniCredit's Nielsen Sees Fiscal Help Coming for ECB

The transcript discusses the European Central Bank's (ECB) role in managing inflation, particularly focusing on the challenges faced by Mario Draghi. It highlights the ECB's efforts to close the output gap and the influence of fiscal policy. The conversation also speculates on the future of Quantitative Easing (QE) and the potential extension beyond March 2017. Additionally, it examines the political pressures on the ECB, including upcoming elections and referendums, and their impact on monetary policy decisions.

What is the primary mandate of the ECB regarding inflation?

• To maintain inflation at 5%

• To achieve an inflation rate of 2%

• To eliminate inflation completely

• To increase inflation to 4%

What external factor is mentioned as impacting the headline inflation number?

• Gold prices

• Interest rates

• Oil prices

• Stock market fluctuations

What is the ECB considering regarding its QE program?

• Shifting focus to fiscal policy

• Ending it immediately

• Reducing its scale

• Extending it beyond March 2017

What political events are mentioned as potential influences on the ECB's monetary policy?

• French municipal elections

• US presidential elections

• Italian referendum and elections

• Brexit negotiations

Which group is mentioned as suffering due to the ECB's policies?

• Savings banks in Germany

• Technology companies

• Real estate developers

• Automobile manufacturers