The duration of wage and financial contracts can lengthen considerably because people are confident that inflation will not greatly exceed 2 per cent over the medium term. Nor are they unduly concerned about the risk of deflation. Altogether, the real economy works better and is more stable.
Looking at the CPI for October 2015, the year-on-year rate of change in the CPI for all items less fresh food and energy was 2.0 percentage points higher and that for all items less food and energy was 1.5 percentage points higher than in March 2013, that is, immediately before the introduction of QQE.