Thus, there is a risk that disruptive changes in overseas economies or global financial markets may affect Japan’s economy through changes in exports and imports, corporate profits, and financial market conditions such as foreign exchange rates and long-term interest rates. III.
Swings in financial and economic activity  The second risk concerns possible larger swings in financial and economic activity as a result of a misallocation of resources under continuing accommodative financial conditions. Some argue that recent developments in yen carry trades are a sign of such a potential risk.