B.  Firms’ views on the 2 percent target and inflation expectations  Firms are very important economic entities, since they are not only producers and investors but also major borrowers from financial markets. Moreover, they are price setters that  6  Note here that households who hold negative inflation expectations tend to choose zero rather than the true value.
See Koichiro Kamada, “Downward Rigidity in Households’ Price Expectations: An Analysis Based on the Bank of Japan’s ‘Opinion Survey on the General Public’s Views and Behavior,’” Bank of Japan Working Paper Series, No. 13-E-15, 2013.