Former ECB Member Orphanides Says Policy Is ‘Too Tight’

The transcript discusses the European Central Bank's (ECB) policy considerations, particularly regarding interest rates and the quantitative easing (QE) program. It highlights the ECB's reluctance to make changes before major European elections and the ongoing debate about tapering and forward guidance. The transcript also touches on the euro's strengthening and persistent banking issues in Europe, emphasizing the need for governmental action to restore economic health.

How does the current inflation rate affect the ECB's monetary policy?

What challenges does the European banking system face, and what role does the ECB play?