Schulz: Markets Doubt ECB as Lender of Last Resort

The transcript discusses the Eurozone's risk pricing, particularly during the Euro crisis, and the role of the ECB as a lender of last resort. It examines the impact of the ECB's QE program on bond spreads and explores the debate between currency depreciation and structural reform as solutions to competitiveness issues, with a focus on Italy.

What was the role of the ECB during the euro crisis according to the transcript?

• It was a lender of last resort but with conditions.

• It provided unconditional financial support to all countries.

• It acted as a lender of last resort with no conditions.

• It did not intervene in the euro crisis.

What might have happened to the eurozone if the ECB had not implemented its QE program?

• The eurozone would have thrived without QE.

• The eurozone would have adopted a new currency.

• The eurozone might have fractured.

• The eurozone would have remained stable.

What is one argument against the depreciation of the Italian lira?

• It is considered an easy way out.

• It enhances domestic demand in the short term.

• It is a sustainable long-term solution.

• It immediately solves competitiveness issues.

Which of the following is a more sustainable solution to competitiveness problems than currency depreciation?

• Implementing structural reforms

• Increasing government debt

• Raising interest rates

• Reducing exports

What has been a positive sign for Italy's economy since 2012?

• Devaluation of the euro

• Structural reforms and competitiveness improvements

• Higher inflation rates

• Increased government spending