Japan’s economy has been recovering steadily so far, in line with the path envisaged by the Bank; however, taking into account the time lag that accompanies the effect of monetary policy on economic activity, the effects of the QQE will actually start to gain momentum in the economy hereafter.
The introduction of a supranational fiscal capacity, which is missing in the Commission’s reform proposal, would make it possible to manage both country-specific shocks and common adverse events, such as the pandemic and the energy crisis, more efficiently.