Japan’s economic growth rate has been on a long-term downward trend: the average annual rate declined from 4.4 percent in the 1980s to 1.5 percent in the 1990s, and then to 0.6 percent in the 2000s reflecting in part the impact of the Lehman shock. In this situation, consumer prices also continued to decline.
I hope that I can progress some way towards meeting its highest standards in the form of this talk, by raising an issue that is germane to all of us in today’s forum and that is worthy of being tackled in due course – that of, Monetary Transmission in India: Why is it important and why hasn’t it worked well?