I interviewed the ECB's chief economist

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TRANSCRIPT:
I've uploaded a transcript on my blog:

Timestamps:
0:00 - intro
0:50 - the covid inflation shock
15:20 - the Ukraine shock
22:28 - wages & the second inflation stage
25:56 - did high rates kill inflation?
28:16 - what the ECB has to do now
32:08 - will high rates increase future inflation
39:46 - government debt
42:52 - future scenarios

Europe's monetary policy explained, by the ECB's Chief Economist.
Narrated, produced and edited by Dr. Joeri Schasfoort

[hellishgengar]

Great interview. Good to see alternative media get such good access.

[josecarlos]

This is what a real interview looks like. An actual economist who understands the topic making insightful questions. Great job Joeri and also cheers to Philip for accepting the interview.

[abrvalg]

This video would have benefited a lot if graphs were presented to illustrate every number mentioned.
Like "we dropped rates from -0, 25 to -0, 5". Why not show us how they were before and 4 years since?

[stereomachine]

Congrats on the interview! Long time fan, happy seeing the channel develop!

[rudyrodnase]

Hi, please interview Kartik Gada. He has some very important insights.
What you are missing is that high tech grows faster than the economy on average, it is a larger share each year, and a sector that will exert highly deflationary influence. With exponential tech you would also exponentially increase easing.

[SW-fkrb]

This channel is so great, thank you for this!! I didn’t even know I was interested in ECB policy until this channel.

[miguel]

Thank you very much. The interview helped understand the inflation spike and clarify central bank policies. It also helps build trust in institutions like the ECB to see such a knowledgeable and nuanced banker, and provides clear reasons why we need central banks, despite what cryptofans may dream.

What I found hard to understand was your idea that the ECB didn't raise interest rates as much as it could have to allow wages to rise. Philip Lane only said that the ECB raised rates (as much as it had to, in my understanding) to prevent negative real interest rates and to make sure the ensuing wave of wage inflation was moderate and did not lead to a pro-cyclical scenario of high inflation expectations. He also said that, without wage inflation (arguably through higher interest rates), there would have been a recession. So the ECB did not raise interest rates as much in order to prevent a recession, therefore it was also in order to allow wages to catch up, but enough to ensure it was a "moderate process" to prevent pro-cyclical expectations. That's what I understood.

[ljragsandfeathers]

Thank you, Yuri! This was a fantastic interview 😊

[thomas]

Working in Banking what I didn't grasp pre-inflation was that raising retail rates just a few percent would cause such public discontent. I genuinely thought Reserve Banks had far more latitude to exercise appropriate policy.

For that reason I think we should curtail ZIRP and QE as policy tools even if it causes some deflation.

[antonvinnichenko]

Good to hear the information from the horse's mouth. Also a good idea to discuss events which are relatively in the past to avoid too much political influence. Thanks Joeri!

[hansgruber]

The way you summarise what you take from what he's saying is brilliant. Fantastic interview technique, please do more of these.

[IllIl]

Very cool interview, nice to hear from someone right in the thick of it, and to have them interviewed by someone intelligent and knowledgeable! :)

[g.zoltan]

I first came to this channel many years ago to learn about central banking, I'm happy that this topic came up again in a big way.

[MrShady]

I really enjoyed this video. the questions were well thought, yet simple. it made it easy to follow, yet entertaining for people like me who know the basics, but nothing too in depth.

[drscopeify]

You are a very skilled interviewer, great questions and discussion!!

[flaviusjustinianus]

Kudos for making that great discussion with your Interview partner

[JulienDLauriers]

lobe your interviews, always great conversation with great guest

[Heapfael]

Very shocking to see that an organization with the *single* mandate of price stability and that is supposed to be independent openly considers itself part of the government and argues for monetary policies based on fiscal spending needs as Lane does in the beginning of the video. "We had to ignore price stability to support very generous government spending. Surprisingly this lead to inflation". Very unfortunate that Joeri didn't push against that line of arguments.

[HallBrgg]

Very nice interview! But I can't help to think that summary of the policy is that is that intrests rates are going to be up for as long as it takes inflation to get back to 2%.

[danilobianco]

Very good and interesting intervew with many insights. Please bring more content like this!