Looking at firms' perception of resource utilization, an indicator for supply and demand conditions, the weighted average of the diffusion indices of production capacity and employment conditions in the Tankan (Short-Term Economic Survey of Enterprises in Japan) suggests that the pace of improvement in resource utilization in consumption-related industries, such as retailing and services, is slower than the average for all industries.
The basic intuition is that integrated goods and financial markets provide a powerful risk-pooling mechanism, leaving policymakers free to focus on minimising the distortions that might hamstring their respective domestic economies.