The first point is the reason why prices have been sluggish even though the economy has improved steadily. Basically, this is likely to be mainly attributable to the experience of prolonged low growth and deflation. The long and severe adjustment phase since the second half of the 1990s, including the financial crisis, brought about sluggishness in economic activity and asset prices.
We were early in the field, and we have kept abreast of analytical developments over the years. As a result, three of our central banks now publish financial stability reports with in-depth analysis which is comprehensive, sophisticated and is designed to address the principal areas of potential vulnerability we face.