Then, as a result of a period of temporary demand weakness of the same extent as that in the first scenario, inflation falls to -1 per cent. Apart from the absolute numbers, these two cases are identical. Should we worry about 3 the latter more than the former, simply because the zero line has been crossed?
The total amount of stocks purchased by the Bank as of May 31, 2004 was 1,979.9 billion yen. Conclusion Japan’s economy is expected to continue recovering as it gains further momentum gradually. To ensure that this recovery will become sustainable and to overcome deflation, the Bank considers it essential that a wide range of economic entities continue to make efforts to revitalize the economy.