8  exerted on the economy in the wake of the crisis, it will be necessary to respond with vigorous expansionary macroeconomic policies. If the response is inadequate or delayed, the economy will fall into deflation and face difficulty escaping from it. Fourth, regarding a financial crisis, however, there is no better way than to prevent it.
In doing so, ex ante and ex post financial regulation -- monitoring excessive risk-taking behavior of financial institutions and setting up a resolution mechanism -- as well as macroprudential policy -analyzing and assessing systemic risk in the financial system as a whole and taking policy measures based on it -- play key roles (Wakatabe [2015], pp.142-147).