The pickup included an increase in purchases of autos and light trucks that, in turn, prompted automakers to increase their assembly schedules for early this year. And while we don’t have December data yet, initial reports of holiday spending have been strong.
Japan has experienced the asset price bubble in the fairly favorable price environment and resultant long-lasting economic stagnation in the last two decades. Japan’s experience suggests the importance of assessing the sustainability of price stability over a fairly long period, which many central banks have emphasized in recent years.