This policy framework consists of two pillars: a strong commitment policy aiming to work on inflation expectations, and large-scale JGB purchases in order to push down long-term interest rates. A. A Strong Commitment Policy (Forward Guidance) Let me elaborate on the strong commitment policy first.
In economic theory, efforts by the central bank to work on people's forecasts and expectations through commitments regarding the future course of monetary policy are called "forward guidance." The importance of working on expectations was recognized by economists long ago.