I believe that by steadily pursuing QQE, the Bank can achieve the target of 2 percent based on the aforementioned mechanisms, that is, through improvements in the output gap and a rise in inflation expectations. The Bank’s mission to ensure price stability remains unchanged irrespective of the level of the potential growth rate.
Effect of regulation on U.S. banks Evidence overwhelmingly shows that financial crises can cause severe and lasting damage to the economy’s productive capacity and growth potential.1 Post-crisis reforms to financial sector regulation and supervision have been designed to significantly reduce the likelihood and severity of future financial crises.