What Causes Exceptionally Low Inflation in Japan and Switzerland?

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. Since the turn of the millennium, the average year-over-year inflation has been 0.1 percent in Japan and 0.4 percent in Switzerland, compared to 1.7 percent in the eurozone and 2.2 percent in the US. What causes the exceptionally low inflation rates in these two low-inflation islands? There are three reasons. Prof. Dr. Gunther Schnabl and Taiki Murai in the following article.