Masaru Hayami: The challenges facing Japan’s economy Speech by Mr Masaru Hayami, Governor of the Bank of Japan, at the Naigai Josei Chousa Kai (The Research Institute of Japan), Tokyo, 24 July 2002. * I. *  *  Introduction  Led by an increase in exports and production, Japan’s economy is entering a cyclical recovery for the third time in ten years.
During the previous two recoveries, during 1993-1996 and 1999-2000 according to the Reference Date of Business Cycle of the government, momentum disappeared over a period of several months against a background of a slowdown in overseas economies and uncertainty surrounding the domestic financial system, and the sustainable growth of private domestic demand was not realized.