These risks imply that undershooting a zero inflation objective is potentially more costly than overshooting that objective by the same amount, and that setting the inflation objective at a rate a bit above zero provides some insurance against these risks. Downward nominal wage rigidities.
The cliché that the Greek people are lazy, whereas all Germans are hard-working, is simply false … Reality is more differentiated. Cœuré: We see the risk of nationalism in European discussions as well, with the temptation to defend narrow national interests. But politicians can overcome this temptation and make progress. Take the banking union, for example.