Lessons Learned from Japan's Experience and Challenges Ahead So far, I have talked about the first topic of Japan's experience of deflation and the Bank's powerful monetary easing to overcome it. I also explained the reasons behind the persistent low inflation. Now, I would like to move on to the second topic of the Bank's challenges under the low inflation environment.
Regarding the monetary policy conduct, I think that the Bank learned two lessons from the past experience. First, even in the face of a substantial decline in the natural rate of interest, it is possible to realize accommodative financial conditions and stimulate economic activity and prices by strengthening monetary easing.