In the extreme case, this situation could lead to hyperinflation, as illustrated for instance by the situation of Germany under the Weimar Republic. EMU is congenitally immune from such episodes, owing to the prohibition of monetary financing and the independence of central banks in the euro area.
Some have pointed out institutional factors including the delay in regulatory reform. Others have questioned Japan-style management and labor practice. The role of education has also been discussed. While it is true that those factors have been complexly intertwined, broadly speaking, the following can be pointed out.