Based on the lessons learned from history, subsequently the Public Finance Act prohibited the Bank from extending credit to the government by underwriting government securities. Moreover, under quantitative and qualitative monetary easing, the Bank has set its price stability target at 2 percent, based on the recognition that neither deflation nor hyperinflation is desirable.
To conclude, the Takahashi Economic Policy was consistent with economic theory and Takahashi implemented his policy package expeditiously. It was indeed a successful macroeconomic policy of which Japan should be proud, and his great achievement still stands as exceptional when compared with the contemporary episode of deflation that lasted for nearly 15 years.