C. Reasons Why It Takes Time for Inflation to Rise In our understanding, the combination of a vulnerability of inflation expectations to adverse shocks and structural factors explains why a rise in inflation is taking time. Inflation expectations started to rise following the introduction of QQE in 2013, but leveled off around the next summer and started to decline thereafter.
Furthermore, they are faced with intense tax competition from countries in the broader area of the Balkans (with lower corporate tax rates: 10% in Bulgaria, 12.5% in Cyprus, 16% in Romania, 20% in Turkey against 29% in Greece). 3.