Changing people’s deflationary mindset and raising inflation expectations through its commitment to achieving the price stability target of 2 percent at the earliest possible time is by itself an aim of overcoming deflation, and at the same time the starting point of QQE’s effects. As I have explained, the perception of inflation by firms and households started to change markedly.
This new landscape seems to be characterised by: 1. Volatile capital flows, prompted by cyclical shifts in flows of funds in response to new risks and opportunities;  2. Greater interconnectedness, between financial institutions as well as between the real and financial sectors;  3.