That triggered sudden liquidity contraction in interbank money markets, immediately spilling over to a wide-range of financial markets. See Nakaso (2001) for the details on Japan’s financial crisis and the BOJ’s role as the lender of last resort. When Sanyo Securities failed, the default of one billion yen in the interbank money markets occurred.
To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed that an ample degree of monetary accommodation is necessary to support economic activity and the robust convergence of inflation to levels that are below, but close to, 2 per cent over the medium term.