Simulating the effects of the less than 1 percentage point decline in real interest rates that I have mentioned by using our macroeconometric model, the results are as follows: the output gap improved by 1–3 percentage points and the yearon-year rate of increase in the CPI rose by 0.6–1.0 percentage point.
While these results vary depending on the assumption about how much stock prices and foreign exchange rates are affected by QQE, the results obtained by using the model are generally in line with the actual changes in economic activity and prices.