Second, a variety of aggressive fiscal and monetary policy measures and measures to stabilize financial systems are being implemented around the globe. And third, extreme concerns about the economic outlook are beginning to subside. However, obviously, none of these factors will guarantee continuous and autonomous economic recovery, in other words, a recovery in private final demand.
For instance, large-scale fiscal policy measures can temporarily mitigate the economic downturn, but cannot be relied on forever. The recovery path of Japan's economy depends greatly on whether private final demand – exports, consumption, and business fixed investment – recovers strongly in a sustainable manner without any help from fiscal and other policy measures after the completion of current inventory adjustments.