1 In the current crisis, major central banks have expanded their balance sheets, but excluding the Bank of England, they have not characterized their measures to loosen monetary policy as quantitative easing. This certainly is understandable when we look back on the Japanese experience, where the effectiveness of quantitative easing on real economic activities has not been confirmed.
Second, as I mentioned, in order to stabilize the financial system, the injection of capital into the banking system together with the provision of liquidity is indispensable. This alleviates pressure on the financial intermediation process, but it is not sufficient to resolve the fundamental problem which had lead to the crisis. This raises the third point.