I believe this could be easily understood by looking back at the fact that yields on government securities of member states of the euro area had remained at practically the same levels for nearly ten years. What ultimately drives market developments is economic fundamentals. Over the last 15 years in Japan, there were several phases when the yen depreciated.
Although exports and production increased during those phases, we regrettably did not succeed in raising the potential growth rate (Charts 30 and 31). The important thing is to make use of the current favorable conditions and make steady efforts to strengthen the competitiveness and growth potential of the economy. VII.