Of course, one-off factors may partly explain the development of the euro: issuers may have deliberately postponed deals arranged in 1998 until after the “changeover weekend” and increased issuance activity in order to create liquid benchmarks. However, issues in euro have been growing continuously over the whole year, so other factors are also likely to have played a role.
Similarly, Eggertson and Krugman (2012) claim that the natural rate of interest declines and deflationary pressure becomes large during the deleveraging process, induced by a tightening in the financial constraints. 6  BIS central bankers’ speeches  Kingdom is that it has similar Schumpeterian effects, although this scheme’s origin may be different from those of the fund provisioning measures of the Bank of Japan.