A slowdown in the inflation rate in Japan since last summer is mainly attributable to the decline in crude oil prices, and it is common to many countries. The rate of decline in crude oil prices since last summer was very large – about 60 percent within about six months.
The decline in the real capital base of banks when macroeconomic environment is weak provides ample reason why macroeconomic stability must be of utmost priority for building a strong and sustainable banking sector. 2|Page  5. Ladies and gentlemen, this is exactly what the first order of business of the new government sought to do.