It is not easy to quickly dispel the deflationary mindset that has formed over the course of 15 years of deflation. However, as the first observation I mentioned shows, in line with theory, the Bank can work on inflation expectations through forward guidance, if it can avoid negative price shocks.
Therefore, I think that the Bank's strong stance and persistent efforts toward achieving the price stability target of 2 percent are important. B. Determining the Optimal Yield Curve The second challenge that has emerged during the course of QQE is how to determine the optimal shape of the yield curve to achieve the 2 percent price stability target.