In contrast, Japan's economy is currently facing labor shortages due to monetary easing. If inefficient firms are to be forced to exit the market, it is much better if this occurs through labor shortages and upward wage pressures.
With regard to the second argument that the current low interest rates are merely the result of a "frontloading" of future demand, both production and people's incomes have been  16  There had been claims that, due to low interest rates, inefficient firms are able to survive.