They supply the Bank with an effective mechanism for assessing and dealing with demand pressures in the economy in a way that reduces fluctuations in output. Here's how this 'stabilizer' feature of the targets works.
Thus, the Bank will monitor more closely future developments in domestic and overseas supply and demand conditions, as well as in the foreign exchange market. 5. In sum, private demand has firmed in a virtuous cycle as growth in production is accompanied by growth in incomes, supported partly by the yen’s depreciation which augmented corporate profits and net exports.