Fed’s Virus Response ‘Exactly Appropriate’: Former ECB President Trichet

The video discusses the need for fiscal policies in the euro area, highlighting the room for maneuvering due to a current account surplus. It addresses liquidity issues in New York and the correlation between asset classes, emphasizing the Fed's response. The discussion shifts to the strength of the dollar, historical currency accords, and the lack of G20 coordination during the coronavirus crisis.

What is the main reason the euro area has room for fiscal maneuvering?

• Strong political leadership

• Low unemployment rates

• Current account surplus

• High inflation rates

What economic indicator suggests that there is something wrong with the market?

• Low interest rates

• High GDP growth

• Stable currency exchange rates

• Correlation between all asset classes

What was the Federal Reserve's response to the economic distress?

• Providing additional credit and liquidity

• Raising interest rates

• Increasing tariffs

• Decreasing taxes

What historical event is mentioned as a response to excessive dollar strength?

• The Bretton Woods Agreement

• The Plaza Accord

• The Maastricht Treaty

• The Kyoto Protocol

What is identified as a major issue in the handling of the crisis?

• Overregulation of markets

• High inflation rates

• Excessive government spending

• Lack of G20 coordination