Before exchanging views with you, I would like to talk about the current state of and outlook for Japan's economy, and explain how the Bank has been conducting monetary policy to deal with the severe economic conditions since last autumn. I. Economic and financial developments in Japan  A.
The current state of Japan's economy  I would like to talk first about the current state of Japan's economy. The deterioration of economic conditions in Japan that began last autumn was so sharp and substantial that it was described as "falling off a cliff." Fortunately, economic conditions have recently begun to stop worsening.