In Japan’s case, this also means overcoming deflationary pressures. The second challenge is to enhance the growth trend, or strengthen the foundations for growth. In other words, the challenge is to raise long-term growth prospects, especially in domestically-oriented growth. This should be done by solving the coordination failure in banking and capital markets described above.
The third challenge is to avoid causing problems in national debt management. We should design and execute carefully measures to cope with the first and the second challenge, taking appropriate account of the current national debt situation as explained before, as well as general economic conditions.