As the background to these developments, we can point to anticipation of firms undertaking fixed investment from a relatively longer perspective, such as that (1) for growth areas, in view of the 2020 Tokyo Olympics, and (2) in labor-saving machinery and equipment in order to deal with labor shortages.
A number of policies have been identified in the debate on this issue – some quite modest, and others rather ambitious. The issues involved are highly complex. Overall, I believe the most productive initiatives are those that involve relatively modest, practical solutions.