currently, policymakers in both japan and the united states face the challenge of designing policies that provide a credible commitment to medium - term deficit reduction without disrupting the fragile recovery. but once in place, such policies should help reduce uncertainty and boost household and business confidence. japan would also benefit from measures to increase its potential growth, which is generally estimated to have fallen to less than 1 percent and could decline further as population aging progresses. it is widely believed that easing regulations could promote faster productivity growth, particularly in the services sector. declines in the working - age population also make it desirable to boost labor force participation. higher employment and faster productivity gains would help to boost economic activity, enhance fiscal sustainability, and restore japan ’ s contributions to global economic growth. conclusion growth in the advanced economies is still hampered by critical challenges and full recovery is likely to take several years. emerging market economies, particularly in asia, have performed better, but both they and the global economy more generally would benefit by further rebalancing of their growth toward domestic demand. japan initially bounced back more quickly than other advanced economies from the global financial crisis, but its growth has slowed recently, and it also faces serious fiscal and structural challenges. by addressing these challenges, japan can enhance its long - term prospects and continue to play a leading role in asia and the global economy. bis central bankers ’ speeches

sergiy nikolaychuk : inflation targeting in emerging economies closing remarks by mr sergiy nikolaychuk, deputy governor of the national bank of ukraine, to the nbu ’ s online workshop on inflation targeting in emerging economies, 26 november 2021. * * * distinguished speakers and participants, ladies and gentlemen, i would like to thank you for joining our virtual workshop and making it possible to have this insightful event, which has exceeded my expectations. while most of us would have liked to gather in person today, i am grateful that we have been able to get together, at least online. since early 2020, the covid - 19 pandemic has affected our lives in unprecedented ways. we have had to adapt ourselves to such irregularities and discover how to perform under these new conditions. the novelty of the pandemic crisis and considerable uncertainty around its further development have made the challenges unique in being considered from different angles. last year, central banks ( cbs ) dealt with acute and persistent volatility on financial markets and together with their governments tried to address deep economic contraction. this year, cbs of emerging markets ( ems ) have been facing new challenges of a multi - speed economic recovery and a simultaneous inflation spike with a high degree of uncertainty. that creates a unique environment that is calling for reshaping our models and updating analytical tools. that is why it is so important to gather for such discussions and look for the solutions in our areas of responsibility. in what follows, i would like to share several of my personal lessons from the recent developments on the sidelines of our workshop. * * * my first lesson concerns a timely and decisive reaction from central banks around the globe to a financial shock and risk aversion to prevent a full - fledged financial crisis. as the financial shock hit during the first weeks of the pandemic, the central bankers were initially focused on adopting measures to restore the orderly functioning of the financial markets. that time the resilience of the ems ’ domestic financial sectors to adverse shocks, along with the liquidity provided by systemically important central banks, proved to be crucial to financial market stabilization. in contrast to a monetary policy response to previous crises when most em cbs increased interest rates to avoid sharp exchange rate depreciations, last year they were able to cut their rates almost immediately. this reflects a higher degree of credibility gained by the central banks, as well as well - anchored inflation expectations. the credibility gained in previous years, sometimes with sizable costs,