*  *  *  Introduction I am pleased to have this opportunity to present an overall review of the Bank's conduct of monetary policy. I. Developments in Japan’s Economy  Japan's economy continues to recover, albeit with adjustments in IT-related sectors.
In part, the reason is that the NIPA deduct taxes paid on realized capital gains from personal income and treat them, in effect, as a transfer to the government sector, 4 even though the capital gains that generated those taxes are excluded from income. This issue is not trivial.