As I have mentioned, the Bank is struggling under many constraints, not only the “zero lower bound” on interest rates which is a fundamental problem in monetary easing, but also the impaired risk-taking capability of the private sector, and malfunctioning of the transmission mechanism of monetary easing.
This has been an issue not only in monetary policy but also in recent macroeconomic policy as a whole in Japan. Throughout the 1990s, I was in charge of executing fiscal policy. During the period, Japan has taken substantial measures both in monetary and fiscal fronts.