If ever a situation existed in which the fabric of business and consumer confidence, both here and abroad, was vulnerable to being torn, the shock of September 11 was surely it. In addition to the horrific loss of life, enormous uncertainties accompanied the unfolding events and their implications for the economy.
Despite some instability observed in the JGB market at the onset, the intended effects of QQE seem to have begun to materialize on the whole, with favorable developments spreading to economic activity and financial markets. Meanwhile, financial conditions remain accommodative.