BIS Review 35/1997  -3-  Before explaining the Bank of Japan’s views on these issues, I would like to emphasize that my talk today is not intended to draw specific conclusions or to assess the levels of stock prices and interest rates. This requires careful analysis and is an issue on which a central bank governor should refrain from comment.
Rather, I would like to give you an idea of how the Bank examines these issues. B. Effects of Fiscal Tightening The first issue that I would like to discuss is the influence of fiscal tightening -such as reduction in public-sector investment, rise in the consumption tax rate, and termination of special tax reduction -- on the economy for the next fiscal year.