In a speech that I gave last week, I highlighted the merits of specifying an inflation objective in terms of a specific numerical value. 7 With an explicit numerical inflation objective, the central bank's strategy is aimed at keeping economic activity close to a sustainable growth path and at maintaining a low and stable inflation rate.
We closely monitor the negative policy rates of Euro and Japan. Frankly, I am in doubt that these will be effective to address their deflation problems compared to their quantitative easing.