Lucas Papademos: Financial market excesses and corrections – a central banker’s perspective Speech by Mr Lucas Papademos, Vice-President of the European Central Bank, at the International Research Forum on Monetary Policy, jointly organised by the Board of Governors of the Federal Reserve System, the Center for German and European Studies at Georgetown University, the Centre for Financial Studies at Frankfurt University and the European Central Bank, Frankfurt am Main, 26 June 2008.
A rise in such prices exerts downward pressure on Japan's economy, which depends heavily on imports of resources, through a decrease in purchasing power – an outflow of income. At the same time, it exerts upward pressure on prices. Let us look back on the two oil crises Japan previously faced.