In the pre-accession phase, the consistency of the exchange rate strategy with other macroeconomic policies and objectives will take precedence over the choice whether to reduce existing exchange rate flexibility. However, a certain degree of exchange rate orientation toward the euro would be in line with further economic and financial integration and would also be consistent with the prospect of ERM II entry.
To sum up, in response to the common shock of the pandemic, the U.S. and Japan have been restarting their economic activities by making the most of their respective characteristics -that is, for the U.S., high mobility in the labor market and flexible adjustments in wages and prices, and for Japan, long-term and stable employment as well as a robust supply system.