Stock prices have been rising sharply as foreign investors continue to invest in Japanese stocks. The Nikkei 225 Stock Average is recently moving at around 10,500 yen. In the foreign exchange market, the yen appreciated as foreign investors continued to invest in Japanese stocks. The yen is currently traded in the range of 116-118 yen to the U.S. dollar.
So the most challenging task for economic policy is timing what are now called “exit strategies”, i.e., when and how to phase out these exceptional measures. This involves striking a delicate balance. As the recovery of final demand is likely to be lacklustre for some time, support should not be withdrawn prematurely.