The Eurozone faces the prospect of sliding into a long period of low growth and inflation – namely “Japanification”. With current central bank policies expected to continue, albeit with some revision in 2020, the Eurozone broadly reflects what Japan has experienced for several decades since the beginning of the 1990s. The question is whether the Eurozone can withstand these trends and overcome various structural barriers.
In this CIO Special – Caught in a low-growth eternity? – we discuss the following topics:
- The causes and consequences of the “lost decades” for the Japanese economy.
- Similarities and differences of both regions with respect to the underlying conditions and policy reactions.
- What the Eurozone can learn from Japan, what it can do to avoid “Japanification” and why there are reasons for optimism.
To download a PDF of the full report, please click here.