RBC Says Monetary Policy Will Remain Loose in Europe

The video discusses the current state and future of monetary policy in Europe, emphasizing the economic slack and the ECB's focus on labor market issues. It predicts that monetary policy will remain loose for the foreseeable future, with interest rates staying low due to structural changes post-financial crisis. The discussion also covers the challenges of normalizing interest rates and the global economic factors influencing this process.

What factors contribute to the current state of monetary policy in Europe?

How does the labor market in Europe reflect the effectiveness of monetary policy?

What are the implications of low interest rates on the economy according to the speaker?

Discuss the potential long-term outlook for interest rates as mentioned in the text.

What does the speaker suggest about the relationship between economic performance and inflation?