That was the past – what about the present and the future? In the last few weeks, we have been witnessing an unprecedented unraveling of the global financial system.
If this argument is correct, it is envisaged that these countries would witness the rapid reduction of both deposits and loans, and the increase in such instruments as MMFs. In Japan, we hear conflicting views on the issue: while some advocate the need to expeditiously solve overbanking, others criticize the slow growth of money supply, which of course is the balance sheet of banks.