If the debt/GDP ratio was expressed in terms of the net present value of debt, countries could then choose between contracting concessional debt or a lower amount of commercial debt. This would ensure that the key policy objective of maintaining fiscal sustainability is met but leave governments free to manage the composition of their borrowing according to their own preferences.
Indeed, irrespective of where the mid-point of the target range should be, there may be some advantage in having a slightly wider inflation target than the original 0 to 2 percent target.