So, this brings us to the end of a somewhat lengthy introduction. Today I will first describe the current state of Japan’s economy and its outlook. After illustrating the challenges confronting our economy, I will explain the Bank of Japan’s conduct of monetary policy.
In my remarks, I would like to pay due attention to the time horizon by clearly delineating short-term and medium- to long-term periods. I. Developments in overseas economies  I will begin with developments in overseas economies, which form the basis for analyzing those in Japan’s economy.