Here, one issue is the difficulty of identifying whether such fluctuation reflects the arrival of a new era or the emergence of a bubble, and also how monetary policy should be conducted under such circumstances. Allow me to elucidate a little on these issues, which I think important, though they are not directly related to the problem of changes in the financial system.
A key question for a central bank is whether excessive swings in economic activity can be avoided only if price stability is maintained by appropriate monetary policy. While this question requires careful examination, by looking at the experience in Japan, my preliminary answer is, to my regret, “No”.