Conduct of Monetary Policy Let me now turn to my basic view on the conduct of monetary policy for the immediate future, based on the economic and price developments I have just described. In view of Japan's present economic conditions, I consider it necessary for the Bank of Japan to persistently continue with monetary easing, primarily for two reasons.
Let me also say a few words about these. It’s generally accepted that a bank’s economic value is determined by its cash flows. Accounting standards should reflect this. That’s why I am in favour of introducing the business model criterion. If the bank’s business is trading, then the Fair Value-method would give a good estimate of future cash flows.