However, it is possible to reduce uncertainty about the economy, and this is an effective and credible method of reinforcing confidence in a market economy. In this regard, making steady progress in structural reforms such as deregulation and ensuring the stability of the financial system are significant.
If these efforts can reduce uncertainty about economic and financial developments, then the present monetary easing will be more effective in stimulating economic activity, strengthening the force of the virtuous circle in the economy. BIS Review 12/1998