ECB's Draghi on Inflation Target

The video discusses the debate on whether to revise the inflation target, either downward or upward, and the implications of such revisions on the credibility of central banks. It highlights the potential increase in real interest rates and the historical reasons for maintaining a 2% inflation target, emphasizing the importance of this target for price stability and economic growth.

In what ways can revisions to the inflation target undermine the credibility of the central bank?

What adjustments are necessary in a monetary union when facing sticky downward wages and prices?