ECB's Smets Says 'Absolutely' Have to Anchor Inflation Expectations

The transcript discusses the European Central Bank's (ECB) focus on balancing employment and inflation, despite its primary mandate being price stability. It highlights the ECB's efforts through quantitative easing and negative interest rates to achieve inflation targets. The discussion also touches on the potential risks of low interest rates leading to asset bubbles and the importance of financial stability for economic growth.

What concerns are raised regarding asset prices in the context of low interest rates?

What is the speaker's stance on the relationship between monetary policy and financial stability?