These include the introduction of deliveryversus-payment (DVP) for Japanese government bonds (JGBs), the development of an outof-region backup center in Osaka, a changeover from deferred net settlement (DNS) to realtime gross settlement (RTGS), and the introduction of liquidity-saving features into the RTGS system. These measures have contributed to enhancing the safety and efficiency of payment and settlement systems in Japan.
Conceptually, however, assessing economic prospects today requires us to blend the two considerations. Then I will turn to the challenges policymakers face as a result of the complex forces identified in the outlook context. Here I will address three questions: Has monetary policy been less effective recently compared with earlier periods of aggressive easing to counter sharply slower growth or the onset of recession?