*  *  *  Introduction I am pleased to be here today to address such a distinguished audience drawn from Japan’s economic and financial circles, who naturally have a strong interest in the future of Japan’s economy.
If we are less preemptive, should we compensate by being more aggressively reactive to recent inflation? Or should we more fundamentally change the specification of the policy rule when confronted with these uncertainties? For example, would we minimize the damage from mis-estimates of the NAIRU and trend growth using a nominal income rule instead of a Taylor rule?