The idea of tolerating a certain positive rate of inflation to ensure a cushion for monetary policy seems to be something like putting the cart before the horse. As you may know, Japan has had an average inflation rate of only slightly over one percent for nearly twenty years.
Thus, it would need a very good reason to accept an inflation rate of 2 to 3%. At this juncture, we should carefully examine the content of price stability that best contributes to the sound development of the national economy by taking due account of the features and structure of Japan’s economy.