Of course, we at the Bundesbank are keeping a close eye on monetary developments in the US, given the process of policy normalisation. Here, also given the substantial fiscal stimulus, inflationary pressures are finally building up. For now, market participants are expecting the Fed to continue the process of gradually normalising policy.
Compared with other countries, households in Japan have a strong tendency to favor safe assets, and even in a prolonged low interest rate environment, a large proportion of household financial assets continue to be deposits. In Japan, however, the elderly hold more stocks than younger people.4 Also, some people seem to begin investing in stocks after retirement.