Moreover, the argument that central banks need more leeway to reduce interest rates implicitly assumes that the zero lower bound will be reached frequently. A number of authors have studied this hypothesis using simulations, concluding that an inflation objective as low as 2 per cent did not impose much constraint on monetary policy (e.g., see Reifschneider and Williams 2000).
Further challenges  If the government policy for the growth strategy and accompanying measures in the private sector are delayed, and the strengthening of growth potential does not proceed, it is possible that the achievement of the price stability target will bring about an economy with low real growth rates under mild inflation.