The decline could  8  BIS Review 51/2007  also be attributed to the asymmetric response of investors to the interest rate cycle. In the absence of a facility of short selling in government securities, participants generally refrained from taking positions which resulted in volumes drying up in a falling market (Chart 7).
Three Challenges for Japan's labor market It is my belief that labor markets should adapt to the changing economic environment in a flexible manner. In this sense, customs and institutions -- which have long structured Japan's labor market -- must be transformed in order to boost our country's growth potential.