Japan has achieved a growth rate slightly exceeding the average for the G-7 countries for the past 10 years, however, and it is not very plausible to think that we can raise it by 1 percent or more at once (Chart 11).
Market participants lost confidence in their trading partners, and, as the crisis unfolded, the financial sector struggled to cope with a massive withdrawal of liquidity, the collapse of one of its most prominent institutions, and a 40 percent drop in equity prices.