Economic conditions in the NIEs and ASEAN countries are expected to follow a recovery trend due to the inflow of overseas capital and increases in private consumption and business fixed investment. II. The Japanese economy  Based on the above assessment of the world economy, I will now talk about economic activity and prices in Japan.
Central banks have been responsible for cushioning some of the financial damage arising from the disorderly financial and monetary conditions triggered by the global financial crisis. However, this has come at a dear price, with central banks’ buffers dwindling and their fire-power compromised by the continued ultra-low returns on their investment portfolios.