As illustrated, Japanese-style employment and wage practices of prioritizing the job security of regular workers and restraining wage increases may have influenced long-term inflation expectations to shift downward. If that is the case, the solution is to implement dynamic U.S.-style employment practices and allow the compensation of regular workers to reflect risk premiums.
I note that, in Japan's labor market, job mobility and a social safety net are not necessarily sufficient. In this situation, the U.S.-style employment system is unlikely to be socially acceptable. In fact, it has been difficult to reach a consensus between labor and management, and thus progress in labor market reform has been moderate.