This policy has implications for promoting domestic output growth in that the interest rates may for this purpose, be required to be kept at moderate levels. But the larger objectives of evading the likely potential disruption of domestic activities arising out of an exchange rate crisis should also be kept in view.
This is one of the initiatives that marked the start of Japan’s co-operation with third countries in the process of industrial modernisation in Japan. France also played a role at the time of the creation of the Bank of Japan.