Introduction It is my great pleasure to have the opportunity today to exchange views with a distinguished gathering of business leaders in Osaka. I would like to take this opportunity to express my sincerest gratitude for your cooperation with the Bank of Japan’s branches in Osaka, Kobe, and Kyoto.
In the immediate aftermath of the crisis, stimulative monetary and fiscal policies proved highly effective in supporting robust growth in domestic demand, particularly household expenditures, which grew to record levels. Yet, as effective as it has been, with domestic demand now slowing, the limits of this growth model are clear.