The theme of this conference, "Inflation Dynamics," is, without any question, one that cannot be ignored by any central banker pursuing the most desirable monetary policy. Presumably it is the interest in a central banker's perspective on this key topic that explains why I have been given the privilege of speaking to you today.
Accordingly, I would like to take this opportunity to give my thoughts on the subject. The issue of inflation dynamics has been studied for a long time, yet remains as relevant today as ever. The year I joined the Bank of Japan, 1958, was the year when the seminal paper by Professor Alban W. Phillips was published.