The first point warrants considerable attention currently in predicting the outlook for Japan's economic activity. If overseas economies slow further and negative effects on Japan's economic activity materialize, it may become necessary to take policy actions. In this case, it will be important that such actions should be decided after examining the scale of the negative effects and how fast they spread.
For example, if the economy faces a crisis, such as that which could threaten the financial system during the global financial crisis, this will lead to a rapid economic downturn through credit contraction. Therefore, decisive actions would be necessary.