Recently, many industrialized countries such as the United States and the euro area have experienced high and further rising inflation, whereas in Japan and Switzerland inflation has remained low. While inflation reached 5.9 percent in the eurozone and 7.9 percent in the US in February 2022, Japan and Switzerland reported 1.0 percent and 2.2 percent, respectively. Gunther Schnabl and Taiki Murai provide you with three reasons for the exceptionally low inflation rates in these two countries.
