I therefore consider it inappropriate at this point to aim at achieving the 2 percent price stability target in a short period of time — whereby the inflation rate will be maintained at around 2 percent in a stable manner — not only because this is unfeasible, but also because this will have a negative impact on the economic activity of households and firms.
In general, different models have different implications for what kinds of policies will stimulate current and future economic activity. However, reducing the tax rate on physical investment is an effective form of stimulus in a wide class of models. References Cole, Harold L., and Lee E. Ohanian. 1999.