Germany and Japan had shorter periods of high persistence of inflation, with persistence beginning to decline around 1969 in Germany and around 1979 in Japan. Cecchetti and his co-authors conclude that the rise and subsequent decline of inflation persistence has thus been a worldwide phenomenon.
Only then will we be able to effectively stabilize the economy, prevent long-term (hysteresis) effects and pave the road for a sustained recovery. And with this, let me conclude. 5