Such flexibility in wage setting was attained not only through a reduction in bonus payments and an increase in the number of non-regular workers, but also the downward revision of fixed compensation for regular workers (Chart 21). As mentioned earlier, compared to the United States, price declines in Japan were attributed mostly to declines in services prices.
The role of the Bank will be to work relentlessly to (1) support the rebuilding of the Japanese economy by maintaining the current easy stance on monetary policy; and (2) continue to supply sufficient liquidity to ensure the stability of the financial system.