The power and persistence of the direct disinflationary effect depends on both the pattern of the productivity acceleration and the speed of the adjustment process - specifically how fast wages respond directly to the productivity acceleration.
Now is the time to ensure that recovery and to make the growth prospect sustainable for the future. For this I see three major policy challenges ahead:  First, it is important to engage in sound fiscal policies. Indeed, a number of countries have to meet major challenges, and immediate, ambitious and convincing corrective actions are required.