In the foreign exchange market, the trend has been toward a weaker yen against the U.S. dollar, and the yen is being traded in the range of 107-110 yen. With regard to corporate finance, private banks have basically retained their cautious lending attitude. However, constraint that had been caused by severe fund-raising conditions and insufficient capital base has eased considerably.
Understanding the role of monetary policy in financial stability—if there is one thing we have learned since the turn of the century, it is that price stability does not guarantee financial stability. 2.