In particular, since JGB prices affect the price formation of many financial products and assets, risks already may have accumulated in such a way that drastic fluctuations in JGB prices could lead to revisions to prices of a wide range of financial products and assets, thereby exerting severe effects on the financial system and economic activity.
Adding further to firms' willingness to hold on to their existing equipment through the current period is the apparent absence of new “killer apps”, break-through technological advances in applications such as e-mail and web browsers that in the past have spurred investment in software and in complementary goods like computers and communications equipment.