Let me also highlight the importance of an environment in which new products are desired. In order for a number of innovations to be created in Japan, it is essential to maintain the virtuous cycle between demand and innovation by appropriately stimulating demand. It is said that necessity is the mother of invention.
There is evidence that the effect on other asset prices, on average, has also been considerable.3 An important vehicle for the financial boom in emerging-market economies was a surge in capital inflows by nonresidents, observed since 2010. Although annual flows were not unprecedented, this time their persistence, and more importantly, their composition, characterized by a higher proportion of portfolio funds, were distinctive features.