Similarly, I judge that the upward pressure of improvement in the output gap as well as a rise in medium- to long-term inflation expectations on the inflation rate will emerge at a slower pace.
In other words, a nation like Japan, given its rapid aging and low birth rate, may face somewhat limited potential domestic demand compared with other economies that enjoy more favorable  4  BIS central bankers’ speeches  demographics. Thus, the output gap improvement is unlikely to give rise to a rapid pace of wage increases and inflationary pressure compared with other economies.