Richards: 'Muddled Messages' From Draghi, ECB

The video discusses the challenges and limitations of monetary policy, particularly in Europe under Mario Draghi's leadership. It highlights the need for fiscal policy to complement monetary efforts, especially in light of the US economic policies under Donald Trump. The video also examines the European Central Bank's struggles with inflation and structural unemployment, emphasizing the need for broader mandates and political consensus.

In what ways does the text suggest that fiscal policy needs to adapt in response to current economic conditions?

What is the significance of the 2% inflation target mentioned in the text?