The decided good policy will contribute to vitalization of corporate finance, although this is not the end of the story. Fund demand from the private sector is becoming stronger toward the end of FY 2008. The BOJ is required to take further actions including purchase of stocks from financial institutions in an emergency.
For a certain period, top priority to Japan is to prop up the economy with every possible policy. It gives the nation's fiscal restructuring process no other choice but to take more time than originally planned. In the long run, however, the people never feel easy about the social welfare system without being convinced of the sustainability. Only consumption tax rate raise can ensure the system. The tax must be increased after confirmation of the economic recovery. The tax related bills under discussion in the Diet justly shows the scenario.