I believe that sustained reforms in both the private and the government sectors, together with the Bank’s commitment to keep monetary easing, will help the economy gather momentum, which in turn will lead to a better possibility that deflation comes to an end. III.
Longer-term issues for the Japanese economy  Despite the encouraging short-term outlook, the aging and declining population is a source of concern for economic growth in the long run. Any attempt to address this concern would cause a conflict of interests with regard to income transfer and risk sharing. How to deal with this type of conflict is a particularly daunting challenge.