Between mid-December and early January, yields on Japanese government bonds rose further to reveal the market concern over the deterioration in the supply-demand balance due to the planned massive issuance.
物価動向には様々な要因が影響を与えますが、その基調は需給バランスによって規定されると考えています。
While price developments are affected by various factors, I consider that the factor that determines the underlying trend in prices is the aggregate supply-demand balance.
しかしながら、一部の電子部品・半導体においては、部材需給が逼迫しています。
The demand-supply situation has tightened up for certain electronic components and semiconductors, however.
経済全体の需要が持続的に回復していけば、労働市場の需給環境も改善していくことが見込まれます。
If demand achieves a sustained recovery throughout the economy, this will lead to an improvement in supply and demand conditions in the labor market.
Y=C+I+G」は、財市場の需給均衡式をあらわしています。
The first important formular is Y= C+ I+ G. This formular describes the equation for equilibrium in the goods market.
Chubu Electric Power is promoting efforts toward accurate management of fluctuations in energy supply-demand balance caused by large-scale introduction of renewable energy, as well as toward further rationalizing the operation of its electric power system.
The shutdown of the Tomato-Atsuma plant greatly upset the supply-demand balance. As a result, other power plants were forced to shut down in succession, and the outage spread over the entire supply area.
First, further improvement in the output gap, mainly on the back of further tightening of labor market conditions, will lead to a rise in the inflation rate through wage increases.
On the other hand, turning to the domestic side, the supply-demand balance in the macroeconomy, ongoing technological innovations in machinery, and the streamlining of distribution channels will continue to exert downward pressure on prices.
This suggests that, in terms of the supply and demand conditions, the economy has been in excess demand and upward pressure has been exerted on prices.
Prices will rise in due course in line with the narrowing of the output gap and a decline in the unemployment rate, both of which follow expansion in employment; thus, there is no cause for concern.
Turning to the domestic side, the basic conditions surrounding prices, such as the supply-demand balance in the macroeconomy, technological innovations, streamlining of distribution channels, and pricing strategies of firms, are unlikely to change significantly for the time being.
Looking ahead, the pace of the year-on-year decline in the CPI is expected to continue moderating due mainly to the gradual improvement of the supply and demand balance associated with the pick-up of the economy.
As you can see from the decline in crude oil prices this time, actual CPI figures will be influenced by various factors in addition to basic factors such as the output gap and inflation expectations.
The widespread use of renewable energy necessitates finer forecasts of power generation outputs for ensuring a power demand-supply balance. The recent addition of features to the E-PLSM is meant to answer these requests.
It is therefore important to ensure a sustained virtuous cycle, in which increased demand encourages progress in various initiatives, as the Bank's monetary policy stimulates aggregate demand and reasonably tight supply-demand conditions are maintained.
First, most members agreed that the output gap had widened steadily within positive territory on the back of the steady tightening of labor market conditions and a rise in capital utilization rates.
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