BIS central bankers’ speeches  3  Figure 3 Advanced Economies: 10-Year Interest Rates %  14 12 10  U.K. 8  U.S. 6  Eurozone 4  Japan 2  1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015  0  Source: Bloomberg.
However, overcoming the challenges posed by excessively high inflation requires the contribution of other players as well. Fiscal policy has a major role to play in protecting the most vulnerable income groups from excessive inflation, but has to act in a manner that does not amplify current inflationary pressures. Targeted and temporary fiscal measures cushion the energy shock, without persistent implications for aggregate demand.