By working on interest rates across the yield curve,it is expected that the effects of the QQE on financial conditions and economic activity will be strengthened.
また、金融環境の改善も、景気に対して徐々に好影響を及ぼしていくことが期待される。
Improvements in the financial environment are also expected to exert positive effects on the economy gradually.
第1は、金融環境(長期金利や資産価格など)への影響という観点である。
The first perspective concerns effects on the financial environment such as long-term interest rates and asset prices.
金融環境これまで、景気と物価についてご説明してきました。
The financial environment So far I have explained the developments in economic activity and prices.
The second stage is the transmission of effects from the financial environment to the real economy, or in other words the extent to which firms and households make use of the accommodative financial conditions to increase their investment and spending.
Central banks also need to put morecollaborative efforts into making an analysis of global financial conditions and enhancing further information sharing.
As these changes span a wide range of areas, I think it is helpful to brieflyoutline recent changes in the global economic and financial environment, especially which are deemed important for central banks.
The tightening in financial conditions is exerting downward pressures on the economy, and this is leading in turn to deterioration in the asset quality of financial institutions.
They include, among others, the economic and financial environment which each central bank faces, and the laws which set out the responsibilities of each central bank and the policy tools at its disposal.
Financial conditions were also debated at the meeting, with some participants arguing that“increased risk tolerance” among investors could be lifting asset prices.
Therefore, the central bank has been tryingvarious measures in accordance with the changes in the economic and financial environment, and I will explain the role law has been playing in that respect, mainly focusing on private law.
In such financial conditions, coupled with the effects of other policies, private demand has increased, the output gap has improved, and actual prices have increased.
Regarding financial markets in emerging economies, the financial environment in Brazil improved slightly after the International Monetary Fund(IMF) decided to extend financial support. However, the financial environment in Argentina and Turkey remained unstable.
Financial conditions were also debated at the meeting, with some participants arguing that“increased risk tolerance” among investors could be lifting asset prices.
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