Naohiko Baba, Shinichi Nishioka, Nobuyuki Oda, Masaaki Shirakawa, Kazuo Ueda and Hiroshi Ugai, Japan’s deflation, problems in the financial system and monetary policy. BIS Working Papers No 188. BIS central bankers’ speeches  5  the situations in the US and the UK.
At the time, on the heels of significant adverse supply shocks and rather strong wage dynamics, inflation rates were high at levels unseen since the late phases of convergence to the new currency in the euro area. However, we equally saw an upcoming worsening of the outlook for economic activity, as indicated by the rapid decline in several confidence measures.