V. Lessons from the Japanese Experience What lessons, if any, does the Japanese experience have for the Euro area, which now faces similar challenges ranging from low inflation to demographics? I wish I could offer you a full answer, but our own mission to overcome deflation and bring the economy back on track toward sustained growth is not fully completed.
Internal political risks to reducing inflation to its target decreased after the new convocation parliament started to operate and a new government was formed. This makes it possible to intensify negotiations on a new cooperation program with the International Monetary Fund.