This raises the risk that households and businesses could come to expect inflation to run  4  See Lael Brainard (2015), “Economic Outlook and Monetary Policy,” speech delivered at the 57th National Association for Business Economics Annual Meeting, Washington, D.C. October 12. https://www.federalreserve.gov/newsevents/speech/brainard20151012a.htm For evidence that the Phillips curve may steepen when unemployment is low, see Peter Hooper, Frederic S. Mishkin, and Amir Sufi (2019), “Prospects for Inflation in a High Pressure Economy: Is the Phillips Curve Dead or Is It Just Hibernating?” paper presented at the U.S. Monetary Policy Forum, New York, February 22, https://research.chicagobooth.edu/igm/usmpf/usmpf-paper.
7  According to the European Commission forecasts (Spring 2010), the deficit-to-GDP ratio for 2009 is projected to be 6.9%. It is important to highlight that no comparable deficit figures for Japan are available for 2009 yet.