The strengthening of medium- to long-term growth potential of Japan’s economy  I have discussed the outlook for Japan’s economy with emphasis on the impact of the earthquake and developments in overseas economies.
Some observers have attributed the bubbles observed in some asset prices in recent years to a decades-long downward trend in real interest rates. In this view, the decline in interest rates has caused investors to reach for yield by purchasing riskier assets with higher returns, driving the prices on riskier assets above fundamental values.