Figures for Japan's CPI (all items) are adjusted to exclude the estimated effects of changes in the consumption tax rate. 2. Figures for inflation expectations (long-term) are 6-10 years ahead expectations in the "Consensus Forecasts." Sources: Ministry of Internal Affairs and Communications; BEA; Eurostat; Consensus Economics Inc., "Consensus Forecasts."
2  BIS central bankers’ speeches  Economics over three decades ago.3 In that paper, we concluded that real output contained important stochastic trends. A stochastic trend is often characterized as a random walk. A particular feature of a random walk is that it doesn’t exhibit any mean reversion. It means that the stochastic shocks that drive such a series accumulate.