Following a brief recovery, monetary policy was tightened in 2000, and the third recession in a decade followed soon after. The Japanese experience offers a reminder of the importance of monitoring the health of the financial system and the need to be especially wary of signs of fragility following a period of sharp asset-price declines.
They are  This profit calculation assumes operational and regulatory costs are zero. For the arbitrage strategies described earlier to work, the system needs to have sufficient reserves and enough competition among banks. 11 12  -7major lenders in the federal funds market, but they are ineligible to receive interest on reserves.