Given the experience of both the current sharp economic downturn and the overheating of the world economy that preceded it, a wide range of issues, including the degree to which financial institutions should be regulated, are being hotly debated internationally to moderate the amplification of business cycles. III.
The Bank's conduct of monetary policy  I have so far explained the situation of Japan's economy and its prospects with some reference to economic developments overseas. I will turn now to the subject of recent policy conduct by the Bank, some aspects of which I have already mentioned.