The Challenges Facing Central Banks

The video discusses the effectiveness of central bank monetary policy, focusing on the US and European economies. It highlights the potential benefits of a gentle rise in US interest rates and the challenges faced by the ECB in implementing fiscal measures due to political opposition, particularly from Germany. The discussion also covers the fragility of the European financial system and the potential benefits of targeting the yield curve to stimulate economic growth.

In what ways is the financial system in Europe considered more fragile than in North America?

What is the significance of targeting the yield curve for the ECB?