I expect firms and households to make the most of such accommodative financial conditions for proactive economic activity, and for that purpose, I would like to reiterate the importance of raising the “natural rate of interest” I explained earlier; namely, raising the potential growth rate by undertaking initiatives for structural reform.
It is often argued that there is a “limit” to monetary easing, but I do not share such a view. Needless to say, there is a limit in the sense that there are things that “cannot be done legally” or “should not be done,” such as directly underwriting government bonds and monetizing fiscal deficits.