In little more than four months, the Heisei era will draw to a close and make way for a new era. Taking this juncture as an opportunity to look at Japan's economy from a broader perspective, the impact of the prolonged deflation of the past persists in the form of cautious wage setting and a reluctance to accept price rises.
There are some indications that the euro area, too, cannot fully escape the global downward pressure. Fortunately, this comes at a time when the internal monetary conditions in Europe are rather favourable. The goal of price stability has largely been achieved. Moreover, there seems to be no obvious threat to maintaining price stability in the foreseeable future.