However, the inflation rate is still at a low level, and this most probably will restrain the rate of increase in wages resulting from the wage negotiations between workers and management this coming spring. I therefore take the view that medium- to long-term inflation expectations will be more or less unchanged from the current level for the time being.
An excess of spending over production used to finance business fixed investment could have a payoff in terms of higher future output large enough to service the increased international indebtedness and still leave the country better off.