In a situation where the anchor of inflation expectations has been lost, I believe that to achieve the 2 percent price stability target and maintain the target price level in a stable manner, it is important not only to enhance monetary easing, but also to further strengthen the coordination of fiscal and monetary policy -- that is, a "policy mix."
9 Given that the output gap in Japan was in negative territory for a long period, some would argue that it is necessary to maintain the output gap within positive territory for a long period in order to change 6  6  to the fact that, if monetary easing is continued for a protracted period, achieving the price stability target would become less clear as uncertainties regarding the outlook for the economy would be prolonged.