It would misjudge the current low-inflation episode as permanent and thereby dismiss the lessons of history on the slow pace of diffusion of new technologies. [13] It would create perilous time-consistency challenges for central banks when inflation eventually transitions to the new steady state.
And it would shift a disproportionate share of the macroeconomic adjustment burden onto workers as, even more so than today, shocks to euro area economies would have to be accommodated by lowering nominal wages. Not the best way to foster support for Europe and its single currency! Raising the aim is similarly misguided.