However, we also need to fully acknowledge the shortcomings of the status quo. For many, Europe is a proxy for globalisation, which has created prosperity as well as strong interconnections. Our economies are so intertwined that they can only be disentangled with great difficulty. Consider the complex discussions under way in the UK on how to separate from the EU.
BIS central bankers’ speeches  5  C.  Overcoming challenges  As I have explained, in Japan, due to prolonged deflation of some 15 years, the Phillips curve has shifted downward. In other words, there is an entrenched expectation that it is difficult for prices to increase. I will next explain how to escape from this situation.