Note that the outlook assumes a gradual increase in firms’ and households’ medium- to long-term growth expectations, as well as the potential growth rate, in line with progress in the government’s growth strategy and firms’ initiatives toward improving productivity and their tapping of potential domestic and external demand.
Europe’s economy: the current situation and the challenges ahead Let me come to the third and final part of my remarks: what are the lessons we have learned from these events? First, our monetary policy strategy has proved to be effective. The quantitative definition of price stability and the medium-term orientation significantly reduce the likelihood of either deflation or inflation scares.