The Weekend Quiz – March 14-15, 2020

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

Quiz #573

• 1. Italy is currently in crisis but would have to undergo a period of austerity if it restored its currency and renegotiated all Euro debts into the New Lira (that is, defaulted) because investors would be reluctant to purchase Italian government debt.
• False
• True
• 2. If policy makers use NAIRU estimates to compute the decomposition between structural and cyclical fiscal balances and these estimates are above the true full employment unemployment rate, then the estimated impact of the automatic stabilisers will always be biased downwards.
• False
• True
• 3. Central bank balance sheet management aimed at controlling the yields on public debt at all maturities may not have much impact on the term structure during periods of high inflation.
• False
• True
• 4. ECB boss Christine Lagarde told the world on Thursday (March 12, 2020) that "we are not here to close spreads, that's not function of ECB".
• She should be sacked
• There is no other option

Sorry, quiz 573 is now closed.

You can find the answers and discussion here