This means that, even if the expected rise in inflation does not materialize, central banks should avoid implementing aggressive policy measures in the short run and instead respond gradually over time. V. The COVID-19 Crisis and Its Policy Implication Japan's long experience with monetary easing, and in particular the three different regimes just described, provides important lessons.
The experience of the 2008-2012 period suggests that monetary policy should be flexible, bold, and responsive to external shocks. Moreover, the experience of the two policy regimes between 2013 and 2019 shows that, by applying the lessons of international macroeconomics, the BOJ was able to flexibly adjust monetary policy, taking into account the domestic implications of overseas monetary policies.