Such behavioral change for Japanese firms to become proactive will also lead to an increase in the growth rate of Japan’s economy from a medium- to longterm perspective. We have often heard a question why the inflation that the Bank aims to achieve is 2 percent, although it appears to be understood that deflation should be overcome.
But, on the basis of the evidence just mentioned, it would be unwise to discard monetary analysis –  4  BIS Review 58/2007  especially now that we find ourselves in a period in which asset prices and liquidity are at a high level and ample on an unprecedented scale worldwide.