Basic Function and Principle of Policy Going forward, we need to continue to promote economic growth so as to avoid the emergence of vicious circle risk. The economic downturn poses a risk that may affect corporate and financial sector performance, thereby requiring efforts to strengthen the economic resilience (Diagram 1).
The focus at the time was about the appropriate pace and timing of these exit strategies. This optimistic view envisaged US policy rates being increased by the middle of 2010. There were, however, more pessimistic views which believed (and some still believe) that the risk of a double-dip recession was high.