24 In order to support such efforts, it is necessary to flexibly revise the existing systems and frameworks in response to changes in the economic environment at home and abroad, while securing a social safety net. If demand achieves a sustained recovery throughout the economy, this will lead to an improvement in supply and demand conditions in the labor market.
I mentioned earlier that a continuous decline in wages is one of the causes of deflation. A sustained recovery in the labor market would lead to a rise in nominal wages, thus having a positive effect on prices. Moreover, were economic recovery accompanied by a rise in productivity to continue, real wages would increase, leading to higher living standards.