Was ECB Right to Keep Its Powder Dry?

The video discusses the expected extension of the ECB's bond-buying program and the challenges faced by central banks due to a shortage of paper in the secondary market. It highlights the ECB's past failures to deliver and the market's reaction to ECB decisions. The discussion also covers the limitations of monetary policy, the need for fiscal responses, and structural reforms in countries like Germany and Italy. Economic forecasts for the Eurozone are examined, noting stagnant inflation and declining domestic demand.

What role do fiscal responses play in addressing the issues raised in the text?

What factors contribute to the low bond yields in Germany as discussed in the text?