I believe that establishing a global nominal anchor has an important implication for Japan as well, because the yen’s long-standing appreciating trend since the 1970s is likely to be closely associated with the consistently low level of inflation relative to other advanced economies. You may wonder why major central banks have chosen the numerical value of 2 percent.
I would therefore welcome it if the Ecofin negotiations on Friday of this week were to allow a direct recapitalisation of credit institutions by the European Stability Mechanism (ESM) only after all other available means have been exhausted.