It is also apparent, however, from the bitter experiences of the “bubble” economy that major fluctuations in asset prices are related to large swings in the economy. Therefore, the Bank believes that in order to ensure price stability in the medium to long term, due attention must be paid to asset-price developments.
Later, I would like to discuss in more detail the meaning of price stability in the medium to long term. BIS Review 142/1996  -7-  B. The Significance of Price Stability Let me now consider the significance of price stability. It seems self-evident that inflation and deflation are not desirable.