This reflects the effect of the rapid aging of the population, but I will come back to this topic later on. III. Overseas economies  Let me now move on to the second topic, i.e., the recent development and outlook for overseas economies. This is the major factor that could change the course of Japan’s economy.
In addition, we must not forget that financial markets are constantly innovating, and that it would be naïve to expect regulation and supervision to keep up with these changes. In the second place, the unconventional monetary policies (UMPs) implemented in several advanced economies as a response to the crisis have had thus far important beneficial effects.