Chart 8  Base Pay Increases in Advanced Economies y/y % chg.  6  Japan (base pay increase) United States (employment cost index for union members)  5  Germany (negotiated hourly earnings) 4  3  2  1  0  -1 CY 95  96  97  98  99  00  01  02  03  04  05  06  07  08  09  10  11  12  13  14  15  16  Sources: Central Labour Relations Commission; Japanese Trade Union Confederation (Rengo); U.S. Bureau of Labor Statistics; U.S. Congressional Budget Office; Federal Statistical Office of Germany; Deutsche Bundesbank.
10  Chart 9  Inflation and Deflation Equilibrium Nominal interest rate (%)  Non-linear Taylor Rule i = F(π)  6 5  U.S. Euro area  Fisher relation i=r+π where r = 0.5%.