The main objectives of the QQE have been to dispel a view that took root among people over a long period of deflation that prices would not rise – in other words, a deflationary mindset – and to create a situation in which households and firms behave on the assumption that prices would moderately increase.
Too often, the objectives behind these funds are not clearly defined, and this can lead to misconceptions about their motives, particularly those that have their origins in foreign exchange reserves. As is the case with private pools of capital, high standards of transparency for reporting and governance, as well as objectives, would be helpful for these public pools of capital.