3  As for unconventional monetary policies taken by central banks after the failure of Lehman Brothers, see Monetary Affairs Department, Bank of Japan, “Major Central Banks’ Policy Operations in the Current Financial Crisis,” (July 2009, in Japanese). 4  BIS central bankers’ speeches  Japan’s current fiscal condition is very severe (Slide 4).
In the meantime, due to heightened uncertainty over the economic outlook, long-term interest rates declined considerably. Stock prices continued a downtrend reflecting the concern over the worldwide stock market plunge, the further deterioration in economic indicators, and the persistent uncertainty over the resolution of the problems with Japan’s financial system.