In regard to cyclical and temporary factors, the output gap has deteriorated following a series of domestic and external shocks – such as the collapse of the asset bubbles in the early 1990s, the Japanese financial crisis and East Asian currency crises in the second half of the 1990s, the collapse of the IT bubble in the United States during the early 2000s, the global financial crisis of 2008, the European sovereign debt problems since 2010, the Great East Japan Earthquake and the Thailand floods of 2011, and the spreading effects of recent developments in the relations between Japan and China.
Unconventional monetary policy incorporates some relevant transmission channels that influence financial stability:  The risk taking channel: Monetary policy reduces the risk-free interest rate.  The portfolio effect: Via the portfolio switching channel monetary policy influences prices and yields in other financial segments (like equity markets).