The “deflation issue” and achieving sustainable growth  Finally, I would like to refer to the so-called “deflation issue.” Recently, in discussions of various economic phenomenon, they have increasingly been argued in association with deflation. Therefore, it is all the more important to correctly understand the cause of deflation. Since the 1990s, inflation has been falling worldwide.
Looking at central banks overseas, however, the objectives of monetary policy are clearly  BIS Review 87/2001  7  stipulated by law; no central bank decides its objectives by itself. The Bank of Japan is no exception and the Bank of Japan Law sets its objective as "contributing to the sound development of the national economy through the pursuit of price stability."