For example, Professor Ryuzo Miyao at the University of Tokyo -- a former Policy Board member of the Bank -- presented an analysis based on a vector autoregression (VAR) model that the impact of an expansion of the monetary base raised production and the inflation rate.5  5  Miyao Ryuzo, "Hi dentōteki kin'yū seisaku no kōka wa aru no ka 2," chap.
Although these risks are judged as not significant at this point, it is necessary to pay close attention to future developments. II. Conduct of Monetary Policy Next, I will explain the Bank's conduct of monetary policy. Japan's economy is on its way to recovery from a downturn caused by COVID-19 and uncertainties for the economy have been extremely high.