At present, the virtuous cycle continues to operate as the effects of QQE on economic activity are gradually becoming pronounced. Nevertheless, it is important to carefully examine economic developments and the effects of monetary policy, including the pick-up in economic activity after the decline in demand following the front-loaded increase prior to the consumption tax hike.
Intangible assets literally are difficult to measure. However, taking just one example-- namely, the importance of these assets being discussed both within academia and the business sector-- reveals that it is becoming hard to assess firms' investment activities and the effects of monetary policy without considering the impact of these assets.
Nevertheless, it takes some time to see the penetration of monetary policy effects. In circumstances such as those in evidence today, where global financial markets remain volatile, partly due to uncertainties regarding the outlook for emerging economies and commodity-exporting economies, it could be even more difficult for positive changes to emerge.
Structural Problems and the Nonperforming-Loan Problem A. Background to Structural Problems Looking at the current state of, and outlook for, the economy, and considering theeffectiveness of the Bank's monetary policy, one must acknowledge the need to take other measures, in addition to monetary policy measures, in order to overcome deflation, the single most important obstacle facing the Japanese economy in overcoming its current difficulties.
These fluctuations in long-term interest rates appear to be attributable not only to monetary policy but also to external factors, and therefore should be assessed carefully. That being said, if the effects of monetary policy are produced by the declines in nominal or real interest rates, due attention should be paid to the possibility that liquidity premiums in the JGB markets-- brought about by the Bank's massive JGB purchases-- might in part be weakening the effects of monetary policy.
仮に金融システムの機能度が低下すると、その分、金融政策の効果は低下します。
If the functioning of the financial system declines, the effects of monetary policy will decline to that extent.
金融・資本市場は、金融政策の効果を経済活動全般に伝える「媒体」としての役割を果たします。
Financial and capital markets serve as an important vehicle transmitting monetary policy effects to economic activity as a whole.
というのは、これら資産の価格が有意に変化することを通じて、金融政策の効果が実体経済に及ぶからです。
The effect of monetary policy permeates to the real economy through significant changes in these asset prices.
We have not yet fully understood the effects and side effects of unconventional monetary policy, but there is no need to be too pessimistic about them.
The effects of the central bank's monetary policy spread to the overall financial market and the real economy through various transactions by market participants and arbitrage trading between markets.
As monetary policy affects the entire economy in the way I just described, it is necessary to consider its effects from the perspective of the economy as a whole.
Given that monetary policy takes effect with a considerable time lag, it is necessary that a central bank make long-term projections of future economic activity and prices.
Monetary policy is usually conducted in a forward-looking manner based on the expected inflation rate. This is because the effect of monetary policy materializes with a time lag.
In general, central banks have conducted monetary policy in a forward-looking manner, given that the effects of monetary policy spread to the economy with a certain time lag.
Because monetary policy works with time lags that can be substantial, achieving this objective requires that monetary policymakers take a longer-term perspective when making their decisions.
Since the effects of monetary policy are transmitted to the real economy through the financial system, financial system stability is the basis for monetary policy that aims at ensuring price stability.
The Bank will continue to make contributions as a central bank so that the effects of extremely accommodative monetary policy are fully exerted and will lead to the development of Japan's economy.
Thirdly, in relation to the theory, we will survey the current state of theoretical studies on the source of effects of unconventional monetary policies that have been adopted in many developed countries, including Japan, in recent years.
金融政策の効果もかなり限定的なものとなる。
Monetary policy effectiveness will be clearly limited going forward.
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