But the country's problem was compounded by other factors; namely, deflation and demography. Slide 4 shows Japan's potential growth rate with a solid red line and its determinants in bars of different colors.
Will the banking supervision work that the ECB has been tasked with reveal the presence of a Lehman Brothers among Europe’s banking groups? It is difficult to say at this stage. Countries such as Greece, Portugal, Ireland and Spain, which have been given financial assistance, have already taken steps to consolidate their banking networks.