In contrast, the third arrow (growth strategy) plays a role of raising the potential growth path depicted by the dotted line. In other words, while monetary policy and fiscal policy are the policies to restore economic strength from its temporary decline to being in a sound state, the growth strategy is meant to raise the capabilities of the economy itself.
For Japan’s economy to achieve long-term growth, this growth strategy is a key to success. II. What is “quantitative and qualitative monetary easing”? Now, I would like to focus my speech on today’s main theme: the first arrow, which is the monetary easing policy the Bank has been conducting.