In addition, especially after the Lehman shock, many major countries have emphasized flexibility in the conduct of monetary policy by, for example, publicly articulating the importance of paying due attention to financial system stability (Chart 3). Given these developments, the phrase “medium to long term” is no longer necessary and the difference between a “goal” and a “target” is no longer a substantive issue.
B. Why has the price stability target been set at 2 percent?