However, the technology-based explanation of increased productivity growth does raise a couple of puzzles (see, for example, McKinsey and Company, 2001 and 2005, and Basu and others, 2003).
As for the financial environment, the outstanding balance of current accounts at the Bank of Japan is recently moving at around 20 trillion yen, as the Bank provides ample liquidity. Under these circumstances, in the short-term money markets, the overnight call rate continues to hover at very close to zero percent. Moreover, longer-term interest rates continue to be at low levels as a whole.