Therefore, it is necessary to be particularly vigilant against various potential risks; for example, the possibility of such purchases leading to a buildup of financial imbalances. In this regard, the Bank conducts monetary policy, based on the framework of assessing economic activity and prices from two perspectives, in the context of the price stability target.
Likewise it would be imprudent not to allow for a fairly significant fall in prices, even if only to still pretty attractive levels, over several years. 5 But the truth is that we will learn only gradually what the detailed shape of the new environment is. How should we handle this uncertainty? A few simple messages seem to me to be important.