At that time, Japan’s economy was still in the booming mood. Although the stock market had peaked out already, property valuations still continued to rise. Looking back, I cannot help but think that the Governor was very prescient because it was a few years later that the initial signs of financial instability came to the surface.
Only then will we be able to effectively stabilize the economy, prevent long-term (hysteresis) effects and pave the road for a sustained recovery. And with this, let me conclude. 5