We cannot deny that a feeling of no way out has been in the air, and inflation targeting arguments in the context of monetary policy could be seen as a reflection of such feeling. Having said that, the argument which advocates inflation targeting as a remedy for Japan's problems is not appropriate for the following reasons.
First, a number of national options and discretions are hindering the practical application of cross-border liquidity waivers within the Union. While such waivers are explicitly allowed by the CRR, and already contain prudential safeguards, so far the ECB has received almost no application for their use from the banks it supervises.