Global Economy Is Moving Away From Disinflation, Says Kohl

The video discusses the challenges faced by central banks, particularly the ECB, in managing disinflation and economic constraints. It highlights the ECB's strategy to maintain a stable balance sheet while being prepared to use unconventional facilities if needed. The video also explores the factors affecting inflation, such as oil prices and wage demands, and why inflation forecasts remain low for 2019.

What is the primary reason for the slowing economy in Europe according to the transcript?

• High inflation rates

• Rising oil prices

• Capacity constraints

• Brexit uncertainties

What is the ECB's plan regarding its balance sheet in 2019?

• To ignore balance sheet management

• To expand the balance sheet significantly

• To reduce the balance sheet by selling assets

• To stop expanding and reinvest maturing assets

Under what conditions might the ECB use unconventional facilities?

• When interest rates are too low

• When inflation is too high

• When there is an exceptional need for market liquidity

• When the balance sheet is too large

Why has inflation been difficult to achieve in the Eurozone despite capacity constraints?

• High consumer demand

• Low oil prices and slow-moving inflation expectations

• High wage settlements

• Strong economic growth

What factor is masking the underlying inflation developments in the Eurozone?

• Volatile oil prices

• High interest rates

• Increased government spending

• Strong currency value