At this point, I feel it is very important to make our strategy more understandable. That said, there are proposals from various quarters not to just make the way we formulate our aim clearer, but to raise the targeted inﬂation rate as well.
The long-term downward trend in real interest rates is often cited as justiﬁcation. [12] The lower level of interest rates is said to limit central banks’ ability to reduce key rates when inﬂation is expected to be weak, as they then hit the lower bound more quickly.