BIS central bankers’ speeches  3  The series of unconventional monetary policy measures implemented by the Bank prevented Japan’s economy from falling into a 1930s-style deflationary spiral of sharply falling prices and economic contraction. However, none of these monetary policy measures were sufficiently strong to overcome deflation. Why was this the case?
Finally, Central Banks should participate actively with their research departments in the efforts to understand better the way modern finance operates and may create risks for the economy, with particular emphasis on modelling the feedback effects that occurs between the real economy and the financial sector behaviour.