September 3, 2020  Bank of Japan  Economic Activity, Prices, and Monetary Policy in Japan Speech at a Meeting with Business Leaders in Okinawa (via webcast)  KATAOKA Goushi Member of the Policy Board  (English translation based on the Japanese original)  I. Economic Activity and Prices A.
Although it is empirically observed that there is a two-way relationship between monetary policy and financial inclusion, it is unambiguous that financial inclusion is able to dampen inflation and output volatility. This is achieved by smoothing consumption by enabling people to draw down financial savings in difficult times for everyday needs. In the process, it makes people interest-sensitive.