Swings in financial and economic activity  The second risk concerns possible larger swings in financial and economic activity as a result of a misallocation of resources under continuing accommodative financial conditions. Some argue that recent developments in yen carry trades are a sign of such a potential risk.
In Japan, there have so far been only limited effects on financial conditions stemming from the U.S. subprime mortgage problem and the subsequent volatility in overseas financial markets, and the lending attitude of financial institutions has remained positive. The issuing environment for CP and corporate bonds has been favorable.