This consists of two major components: (1) an inflation-overshooting commitment and (2) yield curve control. Let me talk about each of these in turn. II. Inflation-Overshooting Commitment I will start by talking about the inflation-overshooting commitment. There is a widespread consensus that anchoring inflation expectations is very important in achieving a price stability target set by the central bank.
However, it has not been fully analysed, either theoretically or empirically, how inflation expectations are formed by the  2  public and how they can be raised once they have been de-anchored and fallen to an undesirably low level.