4  BIS Review 76/2008  which any deviations of inflation from long-run objectives are tolerated to allow the efficient relative price adjustments that I have described needs to be tempered so as to ensure that longer-term inflation expectations are not affected to a significant extent.
As some of you may not be familiar with Japan’s economy and the Bank of Japan’s monetary policy conduct, I have provided for your reference a chart entitled “Japan’s Economy and BOJ’s Monetary Policy” that shows major events for Japan’s economy and monetary policy since 1985. Please refer to it as needed.