The risks of a lost decade in the euro area How likely is a full-blown Japan-style scenario in the euro area? 3  Peek, J. and Rosengren, E. (2005), “Unnatural selection: Perverse incentives and the misallocation of credit in Japan”, American Economic Review, Vol. 95, pp. 1144–1166. 4  Caballero, R., Hoshi, T. and Kashyap, A.
(2008), “Zombie lending and depressed restructuring in Japan”, American Economic Review, Vol. 98, pp. 1943–1977. BIS central bankers’ speeches  3  Many underlying conditions in the economic situation in Japan in the 1990s and in Europe today clearly differ. Let me mention four of them.