In light of this prospect, firms’ forward-looking actions, which were not sufficiently rewarded in the deflationary period, look quite promising. Firms should recognize that, without such actions, it will be difficult to generate profits in the future and to increase firms’ value. Not all firms need to change at the same time.
The more firms start to act in view of such a prospect, the more vibrant the economy will become. Some forward-looking firms have started to act already, and they will be rewarded in the end if such actions become widespread. The Bank of Japan will definitely and decisively play its role to make this happen.