During this period, the prospect of resolving banks’ nonperforming-loan problem almost came into sight, and with the tailwind of recovery in overseas economies, there was progress in firms’ efforts to make arrangements to resolve the “three excesses,” in employment, capital stock, and debt, as well as in efforts to implement structural reforms and spend on new investment.
These efforts were strongly supported from the financial side by policies implemented at that time, such as decisive monetary easing policy – namely, quantitative easing policy. Subsequently, the medium- to long-term trend inflation rate rose (charts 1–5).