Then, I will present the current condition of and the Bank’s outlook for prices in the same manner. A. Current condition of and outlook for economic activity  Japan’s economy has been recovering moderately. On the demand side, exports have been picking up at a somewhat slower pace, but domestic demand – notably private consumption, public investment, and housing investment – has been firm.
The existing literature estimated that only between 40% and 43% of country-specific GDP shocks were smoothed among European countries before 1998, with roughly half of this smoothing achieved through national government budget deficits and half achieved by corporate saving patterns.