The Bank believes that what it should do now is to provide the market with ample funds and, at the same time, take great care to avoid the risk of future inflation.
The Importance of Structural Reform What needs to be done for Japan’s economy today is to strengthen the supply side of the economy by restoring the productivity of the private sector, which declined after the collapse of the “bubble.” This should be achieved while monetary and fiscal policies are underpinning the economy, which means that the time limit may not be so far away.