Furthermore, more than 80 percent of the respondents that stated prices “have gone up” described the price rise as “rather unfavorable” in both surveys, while that proportion has followed a long-term declining trend (Chart 6). These various survey results suggest that QQE is fairly widely known to the public.
On the one hand, higher interest rates may be required to dampen an investment boom. On the other, lower interest rates may be needed to moderate the inflow of short-term speculative funds. In these circumstances, monetary policy needs assistance from fiscal policy: a budget surplus may be needed to curb domestic demand, and to provide the financial resources to sterilise the foreign exchange inflow.