On this basis, they introduce three hypotheses as the reason for inflation expectations not rising in Japan: (1) inflation expectations that are dependent on the long period of individuals' experiences; (2) social norms that prices will not rise; and (3) "rational inattention."
In other words, it is clear that developments in financial markets have contributed to a more efficient allocation of capital. This is also to the benefit of pension funds. On the other hand, the integration of the financial markets and the technological developments have substantially increased the risk of contagion in the event of a financial crisis.