As part of the Bundesbank Invited Speakers Series (BISS), Hiroshi Nakaso, Chairman of the Daiwa Institute of Research and former Deputy Governor of the Bank of Japan, delivered a keynote speech at the Bundesbank’s Regional Office in Hesse. Under the title “Germany and Japan 2.0 – Addressing Common Challenges at a Global Inflection Point”, the event brought together perspectives on economic developments in two of the world’s largest industrial economies.

Comparing economic paths: Germany and Japan

Mr Nakaso’s keynote highlighted both similarities and differences in the economic trajectories of Germany and Japan, focusing on potential output, demographic shifts, monetary policy, inflation expectations, labour productivity and long-term growth challenges. He stressed the need for structural reform in ageing economies to sustain competitiveness and economic resilience.

Mr Nakaso placed current global developments in a broader geopolitical context, noting that we are at an inflection point in the global order. Referring to potential US policy shifts under the second Trump administration, he argued that efforts to reconfigure the international economic framework are now more and more geared toward serving national rather than multilateral interests.

Panel discussion with Presient Nagel

Following the keynote, Bundesbank President Joachim Nagel joined Mr Nakaso for a discussion moderated by Falko Fecht, Head of the Bundesbank’s Research Centre. The conversation focused on how central banks and governments can respond to structural challenges in an increasingly uncertain world.

Among the topics discussed was the question of how to make Germany more attractive for international talent – a key issue for long-term growth in light of demographic trends. President Nagel voiced support for the German government in this endeavour.

The discussion also touched on broader themes such as monetary policy, inflation dynamics, digitalisation and financial stability. Both speakers emphasised the need for coordinated responses to global shocks, resilient institutions and forward-looking investment strategies.

About the Bundesbank Invited Speakers Series

The Bundesbank Invited Speakers Series offers a platform for prominent academics, central bankers and representatives from international institutions to engage in high-level dialogue on topics at the intersection of economic research and central banking.