The package also includes a plan for shoring up and rescuing the financial and banking system involving very substantial resources, some $ billion or 6 per cent of GDP. The long period of expansionary monetary policy in Japan, especially from the spring of 1995 onwards, has substantially increased the supply of yen and lowered the cost of yen financing.
It is conceivable, although unlikely during the next two or three years, that we could reduce unemployment by 5 percent of the labour force again. But it is clearly inconceivable that we can do that repeatedly, since that would quickly imply negative unemployment.