Taking into account the weakness of private demand over the past ten years, it is perhaps natural to think that there might be something “structural” which has contained economic dynamism. If this is the case, it is difficult to expect a long-lasting recovery, if any, based solely on macroeconomic stimulus measures.
Hence, to restore vitality to the Japanese economy in the medium term, painstaking efforts must be made to resolve each structural problem so as to enable the nation’s economic potential to fully blossom. And such efforts are also necessary if both monetary and fiscal policy are to have their full effect.