It is my great concern that the shift of Japanese firms’ production sites to overseas might accelerate if anxiety about electric power supply lingers. C.  Price developments  Next, I will move on to price developments. International commodity prices had been increasing on the back of high growth in emerging economies.
Given our uncertainty about the true model of the economy, knowing that systematic policy in the form of a Taylor-like rule delivers good outcomes in a variety of models means that these simple, robust rules can provide useful guidance for policy. Moreover, rule-like policies also play an important role in central bank communication.