Changes in the Economy's Supply Capacity In Japan, various changes have taken place in the economy's supply capacity since the 1990s due to deficient demand and deflation that have lasted for a protracted period. Based on the experience of struggling to overcome excessive employment, firms tightened their  8  employment stance and promoted a shift to non-regular employment.
There is a clear division among the EU Member States: countries, with relatively sound public finances and external balances before the crisis, are performing better than countries with internal and external imbalances (slide 3 – General government balance). But over the past couple of months even euro area Member States with sound economies have been affected by rising interest rates.