The second favorable supply shock is the especially rapid decline in computer prices over the past year or two. Third, import prices declined over 1996, due to both lower inflation abroad and the recent appreciation of the dollar.
If the financial supervisory agency strengthens prudential supervision, this may bring about similar effects to the tightening of monetary policy. Therefore I think it is crucial that the supervisory agency be required to consult with the central bank before the revision of prudential regulations.