There is a discontinuity in the data in December 2017 due to a change in the survey sample. Sources: Bank of Japan; Ministry of Finance.
In a monetary union such as the euro area, with a single currency and a single monetary policy, the main adjustment mechanism is the competitiveness channel which works via an adjustment in relative prices and costs. Over the next few years, the restoration of competitiveness will require significant further adjustments in a number of countries which have seen an erosion of competitiveness.