Is It Time for the ECB to Tweak the QE Rules?

Is It Time for the ECB to Tweak the QE Rules?

Assessment

Interactive Video

Business, Social Studies

University

Hard

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FREE Resource

The video discusses the European Central Bank's (ECB) potential changes to quantitative easing (QE) rules, considering the current economic conditions and low volatility. It explores technical changes in QE due to bond scarcity and the ECB's strategy in response to other central banks. The discussion also covers central banks' preferences for lower yields to encourage investment in riskier assets and the improved economic sentiment in the Eurozone post-UK referendum. Finally, it speculates on the Federal Reserve's next interest rate decision, likely in December, considering the proximity to the US election.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How do central banks' expectations regarding yields influence their policies?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors might lead the Federal Reserve to move in December rather than September?

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