However, apart from these unfavourable shocks, some structural inefficiencies have also been holding back the euro area economy. Forecasting the future is notoriously difficult - even more so under the current geopolitical conditions. Heightened volatility in oil markets, for instance, makes it more problematic than usual to assess shortterm inflation developments.
The "Lost Two Decades" and Deflation Next, I would like to share my view on structural changes in Japan's economy and the challenges they pose from a longer-term perspective, based on my experience at a private firm I worked at from 1975 to 2020.