Japan’s exports are expected to increase moderately as overseas economies – mainly advanced economies – recover moderately. Meanwhile, business fixed investment is likely to follow a moderate increasing trend, with improvement in corporate profits. Private consumption and housing investment, albeit with some fluctuations, are expected to remain resilient as a trend, as improvement in employee income is expected to gradually become evident.
Nor do I believe in excessively tight regulation; there must be a happy medium that enables the institutions to provide the real economy with the financing and services that it needs so much. We have seen, precisely in 2007 and 2008, what happens when regulation is too weak, when we trust in the self-discipline of the markets.