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Please explain the Bank of Japan's view on "price stability" and its "price stability target."

Bank of Japan (Tell me! Nichigin)

Claims Supported by This Source

  1. "Price stability" = A situation where households and firms can make decisions without being disturbed by fluctuations in the price level.
  2. At the Monetary Policy Meeting in January 2013, the "price stability target" of a 2% year-on-year rate of increase in the consumer price index was introduced.

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