The pause in the recovery can be attributed to various factors, including a decrease in demand following the last-minute rise in demand ahead of the expiration of subsidies for purchasers of environmentally friendly cars and the boost from the extremely hot weather, the deceleration in overseas economies, and inventory adjustments in IT-related goods.
17  As a result, these countries achieved a high degree of macro and financial stability over the post-1995 period; in particular, they kept inflation low. This stability had a number of important consequences. It reduced uncertainty for households and firms. As noted, it also lowered risk premiums and long-term interest rates. 18 And it fostered financial and mortgage market development.