Today, the task is to explain why low in ation and de ation are also something central banks want to avoid. This is a new challenge.
Raising in ation expectations which have fallen below target will pose different challenges than reducing in ation expectations did in the past, although it may prove equally, if not more, dif cult to achieve in light of the constraints posed by the effective lower bound (Eggertsson 2003).18 Now, more than ever, effective communication is needed.