Indeed, a cutback in business spending when the Internet and stock market bubbles burst brought on the recession of 2001 and the prolonged weakness that has existed since then.

The labor market improved slightly last month but offered little hope that the economy would soon emerge from its prolonged weakness.

One catalyst has been the prolonged weakness of the real estate market.

Since consumer spending accounts for two-thirds of total economic activity, prolonged weakness in retail sales raises fears that the economy could be headed for a downturn.

And since capital spending by corporations is also declining, a prolonged weakness among consumers could add insult to an already-injured stock market.

A prolonged weakness in the mark would make goods imported into West Germany more expensive.

Analysts said that prolonged weakness in gold prices could hurt some producers.

Both of these trends would be consistent with a gradual comeback in economic activity after prolonged weakness - and have perhaps little to do with the exchange rate.

It also said it was planning to cut back its manufacturing in response to "rapid changes in technology, shifting marketplace demand and prolonged worldwide economic weakness."

That language means that the central bank is concerned that prolonged economic weakness could transform a big slowdown in price increases into a broad decline in prices.