On the other hand, inflation in Japan is low, and the year-on-year rate of change in the consumer price index (CPI) is around 0 percent. Japan has not shaken off deflation.
Meanwhile, in all developed economies the importance and long-term benefits of fiscal consolidation and structural reforms aimed at enhancing competitiveness are appreciated, but their implementation tends to lag, reflecting pains that initially accompany these items. Against this backdrop, demands and expectations on central bank policies are more heightened than ever.