An increase in quantity requires massively increasing the amount of money the Bank directly supplies to the financial system – this is called “the monetary base” – at an annual pace of about 60–70 trillion yen.
Against this background, I will then examine the current crisis. I will conclude by discussing policy implications and the recent recommendations of the Financial Stability Forum. Role of incentives: lessons from history 3. Although every financial crisis has its unique features, there are several recurrent themes.