Developments in the past year In light of this aim, how much progress have we made? Let us next look at changes since the introduction of QQE. The red circles in the chart illustrate developments over the past year and indicate the following.
First, with the economy growing at a pace above its potential under QQE, the output gap has improved and we have moved to the right. Along with this, there has been upward pressure on prices. Second, the red circles are located above the blue Phillips curve for the deflation period.