But I immediately accepted the Club’s invitation without any hesitation because I saw it as a golden opportunity to candidly explain the difficulties the Bank of Japan is facing under the current severe economic situation. As you are no doubt aware, there are various arguments in Japan regarding the management of macroeconomic policy and how to promote structural reform.
Until the first quarter of this year, further monetary easing and how to promote the disposal of non-performing loans had been actively discussed almost every day. Indeed, many held that Japan’s economy could only get out of the stagnant state if monetary easing were effected or if non-performing loans were disposed of.