The Bank of Japan's new policy framework is constructed in such a way that it can avoid this problem while maximizing the monetary easing effects. The formation of inflation expectations and policy responses to lift inflation expectations are the subject of an ongoing debate. I strongly expect these issues to be further explored. III.
These conditions can make it very unattractive for an individual merchant to stay outside a given card network, particularly in a world where the merchant doesn’t know which cards a customer might be carrying.