As other developed countries are keenly watching our monetary policy conduct, it is my sincere hope that Japan realizes sustainable economic growth accompanying price stability, and succeeds in recording a victory over deflation. 8  BIS Review 29/2003
On balance, however, empirical evidence provides mixed support for the notion that global measures of economic slack played a large role in the observed weakening in the relationship between prices and common measures of (domestic) economic slack in the euro area. 6 Indeed, this weakening has to be judged in the context of a multitude of economic and also policy factors.