Combined with the fact that tail-risk on banking losses did not materialise on the feared scale, and the success with the liquidation of IBRC, this meant that, provided the Government stuck to its promised fiscal adjustment path8 – which it did – what had been a high risk Programme turned out a success in the end.
Although the epicenter of the global financial crisis was outside of Japan, its economy suffered a more significant downturn thereafter than did those of the United States and Europe (Chart 14). Moreover, the price stability target of 2 percent has not been achieved yet despite the large-scale monetary easing since the introduction of QQE in 2013.