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World has learned wrong lessons from 'Japanification'

Governments should focus on raising productivity, not on specter of deflation

| Japan
Japan need, somehow, to increase the workforce and their productivity. (Photo by Hirofumi Yamamoto)

Through 2019, central banks in major developed economies have changed their monetary policy stance toward greater easing, even if it is premature to say that a full-scale monetary easing cycle has started.

In September alone, both the European Central Bank and the Federal Reserve moved: the ECB lowered the interest rate it pays banks on their overnight deposits to minus 0.5% and decided to resume bond purchases, while the Fed cut its rate by 25 basis points, following a cut of the same size in July.

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