Draghi: ECB Could Buy Government Bonds

Mervyn King highlights the euro area's risk to global growth due to the ECB's single monetary policy across diverse member states. Mario Draghi suggests unconventional measures like government bond buying to stimulate the eurozone if needed. Forecasts predict weaker growth in the euro area. Meanwhile, Japan's Prime Minister Shinzo Abe considers options like a snap election and stimulus package after Japan enters a recession.

What is the main challenge for the European Central Bank according to Mervyn King?

• Balancing trade deficits

• Managing inflation across the eurozone

• Reducing unemployment rates

• Setting a single monetary policy for diverse member states

What unconventional measure did Mario Draghi mention to stimulate the eurozone economies?

• Implementing austerity measures

• Reducing taxes

• Buying government bonds

• Increasing interest rates

What is expected from the ECB's next set of forecasts?

• Stable economic conditions

• Stronger growth in the euro area

• Increased inflation rates

• Weaker growth outlook for the euro area

What economic situation is Japan facing according to the transcript?

• Deflation

• Hyperinflation

• Economic boom

• Recession

Which option is NOT being considered by Shinzo Abe in response to Japan's recession?

• Increasing the sales tax

• Announcing a new stimulus package

• Calling a snap election

• Postponing a sales tax increase