Of the two cases, the latter provides a larger economic stimulus. Monetary easing effects in Japan are expected to strengthen further in the future, considering that economic conditions and prices are heading toward improvement. Third, financial markets remain extremely stable compared to other countries, as market participants have been reassured by ample fund provision.
Reassuring firms and households about their funding plays a role in supporting their confidence, especially at a time when we are witnessing high uncertainty at home and abroad, particularly with regard to the European debt problem. III. Some points about monetary policy  So far, I have explained the Bank’s powerful monetary easing and its effects.