Yutaka Harada: Economic activity, prices, and monetary policy in Japan

Speech by Mr Yutaka Harada, Member of the Policy Board of the Bank of Japan, at a meeting with business leaders, Nagasaki, 22 May 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

Thank you for giving me this opportunity to exchange views with you and for having taken the time to be here despite your busy schedules. It is indeed a great honor to be here today. Please allow me to express my gratitude for your great cooperation with the business operations of the Bank of Japan, particularly of the Nagasaki Branch.

As you all know, Japan's growth rate, which until the 1980s was the highest among major developed countries, has declined since the 1990s. Low growth started in the 1990s, so it has lasted for three decades. Those who know nothing but low growth are already in their forties. And those who have happy memories of entering the job market during the bubble period and remember suffering through the collapse of asset prices are already in their fifties.