Persistent deflation in the past 15 years formulated ingrained deflation expectation in the Japanese people’s mind.Firms and households don’t invest and consume easily，which leads to prolonged slowdown of Japanese economy. Last April，the Bank of Japan introduced Quantitative and Qualitative Monetary Easing （QQE）. Its goal is to get out of deflation by dramatically changing people’s expectation on prices through explicitly committing ourselves to achieving price stability target and carrying out monetary easing with massive scale. After implementing QQE，the Japanese economy has been smoothly recovering and prices have started rising. People’s expectation has also been continuously improving. On the horizon，the Japanese economy though will encounter the impact of consumption tax hike，will continue its recovery trend，and finally get out of deflation.