The fiscal balance is the financial surplus or deficit of the general government in the Flow of Funds Statistics. Figures for the amount of government debt outstanding and the primary balance are converted from annual to quarterly data through linear interpolation. Sources: Cabinet Office; Bank of Japan. As discussed so far, the Bank's bold monetary easing has produced excellent results. III.
What Are the Dangers of QQE? Given that QQE has clearly produced results, criticism of the Bank's monetary policy naturally has shifted to the argument that "although nothing has happened so far, there is a danger that a serious problem may arise in the future." I call this kind of argument the "big rock theory."