As you know, economic activity hit a soft patch in late spring after having grown briskly in the second half of 2003 and the first part of 2004. Consumer spending slowed materially, and employment gains moderated notably after the marked step-up in early spring. That softness in activity no doubt is related, in large measure, to this year’s steep increase in energy prices.
3  For example, the Bank of Japan's Climate Response Financing Operations make use of financial institutions' expertise in assessing firms in the area of climate change. The financing operations also require financial institutions to disclose relevant information as a condition for supplying funds. These measures have been designed to help use market discipline in an effective way.