The arguments in favor of such a policy hinge on a clear understanding on the part of the public that the central bank will tolerate increased inflation only temporarily – say, for a few years once the economy has recovered – before returning to the original inflation target in the long term. In standard theoretical model environments, long-run inflation expectations are perfectly anchored.
In reality, however, the anchoring of inflation expectations has been a hard-won achievement of monetary policy over the past few decades, and we should not take this stability for granted.