This was true of the Great Depression, and of the Japanese deflation of the 1990s. Perhaps the most important lesson of the crisis, then, is that a stable financial system is necessary to keep inflation low, stable and predictable – and limit the risk of falling into a deflationary trap. The policy response – Where does financial stability come in?
*  *  *  Ladies and gentlemen, •  On behalf of the Oesterreichische Nationalbank, I would like to welcome you to today’s seminar on the IMF’s new „Regional Economic Issues Report“, the REI.