In addition to this worldwide IT revolution, Japan has been experiencing dramatic changes in its distribution and service industries which can be seen as a revolution in distribution networks. The progress of technological innovation and the revolution in distribution networks raise two big questions when analyzing prices.
By distorting the allocative mechanism of the market, saving and initiative were discouraged. The appropriate response as prescribed by economic theory would have been to decontrol prices to induce producers to bring their goods to market. In addition, fiscal discipline and monetary restraint was necessary, in order to reduce inflationary pressures.