In fact, Japan’s commercial paper and corporate bond markets tightened sharply in the last several months, which caused an acute squeeze in Japan’s corporate finance. To counter this, the Bank of Japan has started buying commercial paper and shorter-term corporate bonds, assuming credit risk of private sector debtors.
Additionally, and as Professor Boeri has recently pointed out, 6 there can be no steps backward in undertaking and implementing reforms, particularly with the need for greater flexibility in this era of rapidly changing economic environments. Being here in Amsterdam today, on this given occasion, I should also like to take the opportunity to recall the successful transition to Economic and Monetary Union (EMU).