There has been progress in converting firms’ and households’ deflationary mindset since the introduction of QQE, and many firms have become proactive in making investment in physical and human capital. I consider it desirable that these developments spread further. In closing, let me underline that enhancing the growth potential of the economy is essential for the virtuous cycle in the economy to continue operating.
Central banks implemented extraordinary measures to meet the increased demand for liquidity amid a generalized rejection of assets, highly preferred during the preceding boom, that were suddenly perceived as too risky. This goal, which was at the core of the central bank role as lender of last resort, was attained well.