In particular, since February 1999, the Bank has pursued the unprecedented policy of guiding short-term money market rates down to virtually zero percent to prevent the economy from tumbling into a deflationary spiral and also to support a recovery. What are the factors behind Japan’s lost decade of the 1990s?
With interest rates low, debt service costs for households are average, or only marginally higher than average. Adding other fixed charges such as rent, utilities, and auto-leasing costs does not materially alter the change in the degree of burden.