When considering the effects of the  1  2  The modest growth of wages, despite increased demand for labor, can be attributed to the flexibility of the labor supply, witnessed for example in an increase in the rate of femaleparticipation in the labor force.
BIS Review 32/2007  fall in crude oil prices, we should note the consequential improvement in Japan's terms of trade and concomitant decrease in the amount of wealth transferred to oil-producing countries, which will boost private consumption in Japan by improving households' real income through higher corporate profits and lower prices. 2  III.