Such a review could perhaps also promote healthy competition amongst banks and add to the comfort of the corporates too. The Corporate Debt Restructuring Mechanism (CDRM), which became operational since March 2002, is another platform for banker-corporate interface. Its efficacy is evident in the fact that well over one hundred cases have been approved for restructuring under this system.
Most typically, as Professor Krugman of MIT advocates, it is a policy which aims at a somewhat high inflation rate of 4 to 5% and mobilizes all possible measures to achieve this target. Professor Krugman appears to have asserted this rather extreme policy prescription based on a very pessimistic view of Japan’s economy.