The phenomenon that economic indicators such as inflation expectations seem to respond more moderately to central bank forward guidance than theory predicts has been labelled the "forward guidance puzzle," which has also been the subject of academic debate.8 In Japan's case, analysis of recent developments shows that inflation expectations are susceptible to "negative price shocks.
The new Association is already settling in well at KSMS, which attests to the commitment of the Central Bank in playing its part in this very important initiative of sharing credit information by more credit providers.