2  BIS Review 85/2008  Rescue operations and economy wide and household losses have not only impacted advanced countries but taken a toll on global financial system and send warning signals on need for change in financial regulatory architecture and its landscape. These attributes of central banks helps cushion the impact of political cycles on economic cycles.
As I have already discussed, even after exhausting orthodox policy measures, the Bank of Japan has been engaged in monetary operations to significantly increase the current account balance as well as making use of the "duration effect". Despite such dedicated efforts, however, economic activities have not been stimulated and prices have not stopped declining.