Therefore, making the government bond market more liquid and convenient for many diversified investors is essential to improve functions of both the primary and secondary markets. The importance of reforming the government bond market does not stop here. A highly liquid government bond market in which the market mechanism functions efficiently forms a basis for developing other financial markets.
But the side effect might be, again, a somewhat diminished ability to extrapolate statistical patterns seen in the past to forecast the future, at least for some time. One notable source of dynamics in structural relationships, looking forward, will be the convergence across income and productivity levels.