In addition, a variety of factors put direct downward pressure on prices, such as low-priced imports from emerging economies and firms’ low-price strategies to counter intensifying competition stemming from deregulation.
In response, the Bank of Japan implemented a series of unconventional monetary policies ahead of other central banks around the globe, such as the zero interest rate policy, the quantitative easing policy, and forward guidance. With these policies serving to stimulate economic activity, the economy headed toward recovery from time to time.