ECB Keeping Rates Low for Longer Poses Financial Stability Risk, Papadia Says

The video features Mr. Padilla, a senior fellow at Bruegel and former head of the ECB's market operations. He discusses the ECB's latest stimulus extension, noting that the measures are relatively muted compared to past actions. He highlights the importance of macroprudential measures in maintaining financial stability, especially with prolonged low interest rates. The discussion also touches on the potential risks of extended stimulus and the role of macroprudential policies in addressing financial stability concerns.

What was Mr. Padilla's role at the European Central Bank?

• He was a member of the board.

• He was a policy advisor.

• He was the head of market operations.

• He was a financial analyst.

What is the nature of the new TLTRO series according to the discussion?

• Highly aggressive

• Relatively muted

• Completely ineffective

• Extremely risky

What is a potential risk of extending the ECB's stimulus for a long period?

• Increased inflation

• Difficulty in reversing the policy

• Decreased foreign investment

• Higher unemployment

What is a risk associated with keeping interest rates low for an extended period?

• Increased savings

• Higher exports

• Financial stability

• Economic growth

What measures are suggested to address financial stability issues?

• Fiscal policy changes

• Macroprudential measures

• Exchange rate interventions

• Monetary policy adjustments