The stubbornness of inflation continues to challenge and mystify central bankers worldwide. Whether they are trying to boost price growth or rein it in, policymakers are effectively wrestling with the same problem.ey also help to explain the strong Japanese bias toward domestic, yen-denominated assets. Consider Japan, which has experienced deflation (a decline in the price level) in 11 of the past 20 years. Since 2016, deflationary forces appear to have receded, but inflation rates have consistently remained well below the 2% target set by the Bank of Japan, despite accommodative policies. The BOJ has maintained the ... (full story)