If both nominal wages and prices are sticky, a policy of completely stabilizing prices will force the necessary real wage adjustment to occur entirely through nominal wage adjustment, thereby impeding the adjustment of employment to its efficient level (Blanchard, 1997; Erceg, Henderson, and Levin, 2000).
To realize a sustainable society, I believe that financial institutions' investment or loans to address climate change are important in supporting the efforts of firms that aim to meet Japan's target of reducing greenhouse gas emissions and in increasing firms' medium- to long-term growth expectations.