Results of the 18th Opinion Survey on the General Public’s Mindset and Behavior*This is an English translation of the Japanese original released on April 15, 2004.

May 31, 2004
Bank of Japan
Public Relations Department[Contents]
I. Introduction
II. Survey Outline
III. Summary
A. Impression of Economic Conditions
B. Household Circumstances and the General Public’s Mindset
C. Perception of the Price Levels
D. Recognition and Credibility of the Bank
IV. Complete Questionnaire and Results
I. Introduction
The Bank of Japan, through public relations activities conducted at its head office andbranches, has been seeking to determine the concerns of a broad cross-section of the generalpublic relative to its policy and operations. An example of such action is the Bank’s Opinion
Survey on the General Public’s Mindset and Behavior, conducted since 1993 with anationwide sample of 4,000 individuals who are at least 20 years of age. This survey isessentially an opinion poll designed to gain insight into the public’s perceptions and actions ,and therefore differs in character from the Bank’s Tankan (Short-Term Economic Survey ofEnterprises in Japan), which is a quarterly statistical indicator.
Starting with this 18th survey, new questions regarding prices1 have been added, which asked
respondents to put a specific figure on (1) what percent the prices have changed comparedwith one year ago and (2) what percent the prices will change in one year and over the next
five years. These questions were designed so as to more specifically comprehend the generalpublic ’s perception of changes in the price levels.
In addition, the Bank has decided to now conduct the survey quarterly, instead of
semiannually, in order to more closely keep track of the general public’s mindset andbehavior.
Note: 1. Defined as “overall prices of goods and services the respondents purchase. ”

1II. Survey Outline
Survey period:

From March 5 to March 15, 2004.

Sample size:

4,000 people (2,832 people [i.e., 70.8 percent of the overall samplesize] provided valid responses to questions).

Survey sample participants:

Individuals living in Japan who are at least 20 years of age.

Sampling method:

Stratified two-stage random sampling method.

Survey methodology:

Questionnaire survey. (Researchers visit sample individuals, ask themto complete the questionnaire within a prescribed period, and thencollect the finished questionnaires upon subsequent visits.)2III. Summary
A. Impression of Economic Conditions
1. Economic conditions
Compared with one year ago, the number of people who judged economic conditions to be“worsening” decreased, while those who judged them to be “improving” increased. As aresult, the diffusion index (D.I.) (“improving” minus “worsening”) continued to improvefrom the previous survey.
The D.I. outlook for one year from now (“will improve” minus “will worsen”) also continued
to improve from the previous survey.
Chart 1 Economic Conditions (Questions 1 and 4)(1) Present Compared with One Year Ago[Improving]
September 2001 survey

0.4

March 2002 survey

0.7

September 2002 survey

1.1

March 2003 survey

0.7

September 2003 survey

5.0

Current survey(March 2004)

9.5

0%

[Remaining the same]
27.5[Worsening]
72.0

30.4

68.9

54.3

44.7

28.3

70.9

49.4

45.5

56.5

20%

40%

3

34.0

60%

80%

100%

(2) One Year from Now Compared with the Present[Will improve]
September 2001 survey[Will remain the same]

3.4

March 2002 survey[Will worsen]
39.8

56.8

7.2

September 2002 survey

5.3

March 2003 survey

3.3

September 2003 survey

10.9

Current survey(March 2004)

13.8

0%

64.5

28.2

68.9

25.8

36.7

59.8

20.3

68.6

16.3

69.5

20%

40%

60%

80%

100%

(3) Changes in the Economic Conditions D.I.
Percentage points
10

- 2.5

0
- 9.3

-10

- 24.5

-20
-30
-40

- 40.5

-50
-60
-70
-80
-90
Mar-96

Mar-97

Mar-98

Nov-98Mar-99

Sep-99Mar-00

Sep-00Present (Compared with one year ago)

4

Mar-01

Sep-01Mar-02

Sep-02Mar-03

Sep-03

Outlook (For one year from now)

Mar-04

2. Basis for assessment and interpretation of economic conditions among the respondents
who judged the economy to be “worsening”
When asked their opinion of economic conditions, just under 60 percent of respondents who
replied that the economic conditions have been “worsening” still thought that “this is the mostserious recession ever experienced and it seems that individual firms’ efforts are not enoughto overcome the problem.”
In terms of the interest rate level, roughly 50 percent of respondents, a number equivalent to
the previous survey, stated that “it has negatively affected my household by reducing interest
income on deposits and others.” The number of people who responded with “even at thecurrent level, we cannot expect an economic recovery” still totaled about 40 percent,although the number decreased slightly compared with the previous survey.
Chart 2 Interpretation of Economic Conditions (Question 3)1This is the most serious recession ever experienced
and it seems that individual firms’ efforts are notenough to overcome the problem.

62.0
57.7
57.8

24.4

My own living concerns are not seriously
affected.

23.2
20.2

The conditions must be endured in order toreform the economy and social structure.

18.9
15.2
14.7

M arch 2003 survey
September 2003 survey

12.8

The economy will eventually recover throughfirms’ own efforts.

14.6

Current survey (March 2004)

15.5

0%

Note : 1. Multiple answers were allowed.

5

10%

20%

30%

40%

50%

60%

70%

Chart 3 Perception of the Interest Rate Level (Question 5) 1

45.7
46.0
48.7

It has negatively affected my household by reducing
interest income on deposits and others.
34.7

I hope it will stimulate business activity and thereby
lead to an economic recovery.

40.7
42.2

54.9

Even at the current level, we cannot expect an
economic recovery.

42.7
39.2

Low interest rates are helpful in alleviating thefinancial burden because I am planning to apply for,or repay, a housing loan.

8.5
10.8
9.9
M arch 2003 survey
6.8

I don’t have many complaints because stable prices
secure principal of deposit even though interest
income has decreased.

September 2003 survey

8.5
9.0

0%

Note:1. Up to two answers were allowed.

6

Current survey (March 2004)

20%

40%

60%

80%

B. Household Circumstances and the General Public’s Mindset
1. Present household circumstances
About 50 percent of those surveyed responded that their household circumstances “havebecome somewhat worse off” compared with one year ago, a similar number to the previous
survey. As a result, the D.I. (“have become somewhat better off” minus “have become
somewhat worse off”) was virtually level compared with the previous survey.
Chart 4 Present Household Circumstances (Question 21)(1) Present Household Circumstances[Have become somewhat better off]

[Hard to say]

[Have become somewhat worse off]

September 2001 survey

5.5

March 2002 survey

5.5

43.8

50.7

September 2002 survey

4.8

45.3

49.9

March 2003 survey

3.8

September 2003 survey

5.1

43.9

50.9

Current survey(March 2004)

5.2

43.6

50.7

0%

48.9

45.6

41.8

54.4

20%

40%

60%

80%

100%

(2) Changes in the Household Circumstances D.I.
Percentage points

10
0
-10
-20

- 24.5-30- 40.5-40- 45.5-50- 45.8

-60
-70
-80
-90
Mar-98 Nov-98 Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04

The household circumstances D.I.

The present ecnomic conditions D.I.(Compared with one year ago)7

2. Income and spending
About 50 percent of respondents continued to reply that their income “has decreased”
compared with one year ago, although the number declined compared with the previous
survey. With respect to outlook, the numbers for each answer were virtually level comparedwith the previous survey.
Concerning their spending compared with one year ago, about 45 percent of respondents
answered that they still “have decreased” their spending. With respect to outlook, a little
above 40 percent of people responded that they “will decrease” spending one year from now.
Chart 5 Income (Questions 6 and 7)(1) Present Income Level Compared with One Year Ago[Has increased][Has remained the same][Has decresed]

September 2001 survey

6.1

M arch 2002 survey

5.1

46.2

48.7

September 2002 survey

4.3

44.9

50.7

M arch 2003 survey

4.5

39.8

55.6

September 2003 survey

5.1

38.3

56.6

Current survey(March 2004)

5.0

0%

50.1

43.7

50.2

44.4

20%

40%

60%

80%

100%

(2) Income Level One Year from Now Compared with the Present[Will increase][Will remain the same][Will decrease]

September 2001 survey

5.6

56.6

37.6

March 2002 survey

5.3

55.6

39.0

September 2002 survey

4.5

March 2003 survey

4.3

September 2003 survey

4.8

Current survey(March 2004)

5.5

0%

54.0

41.3

47.6

48.0

52.8

42.3

54.3

20%

40.0

40%

8

60%

80%

100%

Chart 6 Spending (Questions 8 and 10)(1) Present Spending Level Compared with One Year Ago[Have increased]
September 2001 survey

5.2

March 2002 survey

5.9[Have decreased]

55.3

September 2002 survey

5.4

March 2003 survey

4.3

September 2003 survey

6.3

Current survey(March 2004)[Have neither incresed nor decreased]

49.1

45.0

49.8

44.6

45.9

5.8

0%

39.5

49.7

47.0

46.6

48.1

45.4

20%

40%

60%

80%

100%

(2) Spending Level One Year from Now Compared with the Present[Will increase][Will neither increase nor decrease]

1.4

September 2001 survey[Will decrease]

56.2

42.3

March 2002 survey

2.0

55.7

42.3

September 2002 survey

1.5

56.8

41.7

March 2003 survey

1.3

52.6

September 2003 survey

2.0

56.9

41.0

Current survey(March 2004)

1.6

56.2

41.7

0%

45.9

20%

40%

9

60%

80%

100%

When asked for reasons why they have been spending less compared with one year ago, alittle more than 60 percent of the respondents answered “because I fear future cuts in pension
and social security payments,” which marked the highest percentage selected among the
choices offered. The number of people who responded “because I fear a tax increase or rise insocial security burden” increased compared with the previous survey.
Chart 7 Reasons for Decreasing Spending (Question 8-b)1

57.2
60.3
62.2

Because I fear future cuts in pension and social
security payments.

61.7

Because I fear a future job loss or decline inincome.

55.5
57.8

Because my income has not increased or has been
decreasing due to recession or restructuring.

44.6
45.6
42.5
40.6
38.9

Because I fear a tax increase or rise in social
security burden.

45.0
18.3
16.6
17.6

Because interest income has decreased due to the
low interest rates.
8.1

Because the value of purchased financial assets
such as stocks and bonds has decreased.

3.7
4.4

Because there are only few goods or services I want topurchase.

6.8
6.6
6.8

Because the asset value of real estate purchased suchas a house has decreased as I pay back housing loans.

7.1
6.2
7.5

Because there happened to be no big purchases during
the past twelve months.

0%Note: 1. Multiple answers were allowed.

10

March 2003 survey
September 2003 survey
Current survey (March 2004)

3.8
4.7
4.0

10%

20%

30%

40%

50%

60%

70%

3. Employment conditions
About 80 percent of the respondents1 continued to feel “worried” 2 about employment andworking arrangements.
1

Workers who are company employees, civil servants, other types of employees, or part-timers.
“Worried” comprises “quite worried” and “slightly worried.”2

Chart 8 Concerns about Employment and Working Arrangements (Question 24 <respondents1>)[Quite worried][Has norelevance to me
or my family][Slightly worried][Not particularly
worried]

53.0

18.2

1.6

September 2001 survey

27.1

March 2002 survey

30.2

51.3

17.2

1.2

September 2002 survey

29.7

53.6

14.2

2.7

March 2003 survey

33.1

49.6

14.7

2.6

September 2003 survey

31.5

50.4

14.7

3.4

Current survey(March 2004)

29.9

50.3

16.1

3.4

0%

20%

40%

11

60%

80%

100%

C. Perception of the Price Levels
The number of respondents who feel that prices1 compared with one year ago “have gonedown” 2 decreased, while those who feel that prices “have remained almost unchanged”
increased to just above 60 percent.
When asked to what extent the price levels have changed compared with one year ago, theaverage and the median of answers were minus 0.3 percent and 0.0 percent, respectively.
1

Defined as “overall prices of goods and services the respondents purchase. ”“Have gone down/will go down” comprises “have gone down significantly/will go down
significantly” and “have gone down slightly/will go down slightly.”“Have gone up/will go up” comprises “have gone up significantly/will go up significantly ” and “have2gone up slightly/will go up slightly.”

Chart 9 Perception of the Price Levels (Questions 13 and 14)(1) Present Compared with One Year Ago[Have gone down
significantly]
March 2002 survey

6.9

40.8

September 2002 survey

4.8

33.8

March 2003 survey

4.8

September 2003 survey

3.2

Current survey(March 2004)

2.4

0%

[Have remained
almost unchanged][Have gone downslightly]

0.9

9.7

1.4

13.5

1.3

54.6

14.9

1.8

60.7

12.9

1.6

50.4

48.3

25.4

22.2

40%

12

[Have gone up
significantly]

8.8

42.5

32.0

20%

[Have gone up
slightly]

60%

80%

100%

(2) Change in the Price Levels Compared with One Year Ago

Notes: 1.

Average1

Median2-0.3 %

0.0 %Calculated by excluding 0.5 percent of the highest and the lowest figures, respectively, inorder to avoid extremes (the simple average is minus 0.2 percent).

2.

The number that appears in the middle when the answers are listed in numerical order.

(3) Percentage Share[ 5.1% and over ]5.2%[ -5.1% and under ]6.7%[ 2.1% to 5.0% ]5.8%[ 0.1% to 2.0% ]3.9%[ -2.1% to -5.0% ]8.9%[ -0.1% to -2.0% ]5.5%[ 0% ]
63.9%

13

In terms of the outlook for one year from now, the number of respondents who expect thatprices “will go up” increased compared with the previous survey.
When asked to what extent the price levels will change one year from now in a specificfigure, the average was 1.2 percent while the median was 0.0 percent.

Chart 10 Outlook for the Price Levels One Year from Now (Questions 16 and 17)(1) One Year from Now Compared with the Present[Will go down
significantly][Will go downslightly]

September 2001 survey

1.4

March 2002 survey

1.1

September 2002 survey[Will remain almost
unchanged][Will go up
significantly]

64.1

18.2

1.1

12.3

66.9

18.7

0.9

1.0

10.5

70.2

17.0

1.2

March 2003 survey

0.7

9.9

September 2003 survey

0.3

6.2

Current survey(March 2004)

0.6

9.1

0%

15.1

[Will go up slightly]

23.5

1.4

66.6

25.2

1.5

59.4

28.9

1.3

64.4

20%

40%

14

60%

80%

100%

(2) Change in the Price Levels One Year from Now
Average1

Median2

1.2 %

0.0 %

Notes: 1. Calculated by excluding 0.5 percent of the highest and the lowest figures, respectively, in order toavoid extremes (the simple average is 1.2 percent).
2. The number that appears in the middle when the answers are listed in numerical order.

(3) Percentage Share[ -5.1% and under ]1.7%[ 5.1% and over ]7.8%[ -2.1% to -5.0% ]3.5%[ -0.1% to -2.0% ]3.0%[ 2.1% to 5.0% ]13.0%[ 0.1% to 2.0% ]9.1%[ 0% ]
61.8%

15

Regarding the outlook for the next five years, about 55 percent of the respondents answeredthat the prices “will go up,” while a little above 10 percent responded that they “will go
down.”
When asked how much prices will change every year over the next five years, the average
was 1.7 percent while the median was 0.2 percent.

Chart 11 Outlook for Price Levels over the Next Five Years (Questions 18 and 19)(1) Outlook for the Next Five Years[Will go up
significantly]
6.6 %[Will go down
significantly]
0.9 %[Will go downslightly]
10.3 %[Will remain almost
unchanged]
32.2 %[Will go up slightly]
47.9 %

16

(2) Change in the Price Levels Every Year over the Next Five Years
Average1

Median2

1.7 %

0.2 %

Notes: 1. Calculated by excluding 0.5 percent of the highest and the lowest figures, respectively, inorder to avoid extremes (the simple average is 1.7 percent).
2. The number that appears in the middle when the answers are listed in numerical order.

(3) Percentage Share[ -5.1% and under ]1.4%[ -2.1% to -5.0% ]3.1%[ 5.1% and over ]8.4%[ -0.1% to -2.0% ]5.7%[ 2.1% to 5.0% ]16.9%[ 0% ]
38.4%[ 0.1% to 2.0% ]
26.2%

17

Concerning price declines, about 20 percent of respondents believed these to be “rather
unfavorable,” same as the previous survey, while a little less than 45 percent consideredthem “rather favorable.”

Chart 12 Comments on the Price Decline (Question 15)[Neither favorable nor
unfavorable][Rather favorable]

March 2002 survey

43.9

September 2002
survey38.8

March 2003 survey

39.4

September 2003
survey40.9

Current survey(March 2004)

36.8

20%

19.1

38.3

22.9

21.6

39.0

43.8

0%

[Rather unfavorable]

40%

18

39.9

18.7

36.1

18.7

60%

80%

100%

D. Recognition and Credibility of the Bank
Somewhat fewer than 80 percent of respondents “know”3 that the Bank issues banknotes,
approximately 50 percent “know” of its introduction of a new series of banknotes this year,
while about 40 percent “know” that it provides Japanese government securities (JGSs) related
services, accepts deposits from commercial financial institutions, and has branches acrossJapan. Meanwhile, 10–30 percent replied that they “know” of the Bank’s remaining listed
operations or roles.
3“Know” comprises “know very well” and “familiar with.”

Chart 13 Recognition of the Operations and Roles of the Bank (Question 28)[Have heard of it
but do not have
[Have neverdetailed[Familiar with]heard of it]
knowledge][Know very well](1) The Bank issues Bank of Japan notes (banknotes) such as 10,000
yen notes .

56.0(2) The Bank will introduce a new series of banknotes this year.

16.2(4) Commercial financial institutions settle fund transfers
among themselves using current accounts at the Bank.
(5) The Bank operates a computer network called the Bank ofJapan Financial Network System (BOJ-NET) to ensure safeand efficient settlement of funds and Japanese government
securities (JGSs).

23.6

23.4

(3) The Bank accepts deposits from commercial financial
institutions in its current accounts.

11.5

4.8

22.7

19.1

9.9

32.0

29.8

30.1

32.7

(7) The Bank provides services related to JGSs.

14.5(8) The Bank, in implementing monetary policy, has set thequantity of money (the outstanding balance of the current
accounts at the Bank) as its operational target, rather than theinterest rate level.

9.6

16.6

(9) The Bank supplies a large amount of funds to financial
institutions through purchases of JGSs held by the institutions.

7.5

15.5

35.4

33.9

24.2

2.2 5.8

26.9

0%
19

20%

6.0

53.1

20.2

10.3

14.2

20.2

31.0

(6) The Bank provides settlement services for treasury funds suchas taxes and pension.

(10) The Bank purchases asset-backed securities (ABSs) topromote smooth corporate financing for small andmedium-sized enterprises.

22.8

34.2

38.2

21.8

31.6

41.1

31.4

44.3

63.8

40%

60%

80%

100%

[Familiar with][Have heard of but do nothave detailed knowledge][Have never heard of it]

15.2

34.8

43.8

[Know very well](11) The Bank no longer uses the official discount rate as its major
tool of monetary policy.

5.0(12) The Bank either keeps close contact with each individual
financial institution or conducts onsite examinations to obtain
information on their management.

8.3(13) The Bank may act as the lender of last resort and provide funds
to financial institutions in order to maintain financial stability.

10.6

21.6

12.9

18.0

(14) The Bank researches and analyzes economic and financial
developments; for example, through surveys such as the
Tankan (Short-Term Economic Survey of Enterprises inJapan).

18.4

32.6

39.4

35.2

31.2

28.8

38.6

(15) The Bank studies theoretical aspects of monetary andeconomic issues.

8.3(16) The Bank compiles and releases statistics on monetary
aggregates and prices.

10.5

17.8

32.7

37.8

13.0

17.4

29.7

38.8

(17) The Bank intervenes in the foreign exchange market as an agentof the Minister of Finance.

15.1

29.5

45.9

(18) The Bank engages in a wide range of internationaltransactions with overseas central banks and internationalorganizations.

7.5

13.8

33.5

43.8

(19) The Bank transfers most of its profits to the national treasury.

7.2

14.2

30.0

47.0

(20) The Bank is an organization independent from thegovernment.

12.9(21) The Bank’s important decisions are made by the Policy
Board.

5.8(22) The Bank’s missions are to maintain “price stability” and“financial system stability.”

10.8(23) The Bank has branches across Japan.

17.4

8.6

20

41.5

26.4

57.9

22.0

18.7

0%

27.0

19.5

20%

40%

30.9

35.0

20.1

40.7

60%

80%

100%

Somewhat more than 60 percent of respondents stated that they “know almost nothing about
the Bank’s policy and operations” and that “the Bank’s explanations to the public are not clear
enough.”Nearly 50 percent of respondents think that “the Bank is related to our lives,” with around 35
percent replying that “the Bank is contributing to our lives.”
A little less than 20 percent still “do not have confidence in the Bank,” while approximately
30 percent of respondents “have confidence in the Bank,” reflecting a slight increase
compared with the previous survey.
Chart 14 Comprehensive Recognition and Evaluation of the Bank (Question 29)1

A

B

14.2

I know very well about the Bank’s
policy and operations.

20.1

I know almost noting about the

64.6

Bank’s policy and operations.

<66.9><13.2>The Bank is related to our lives.

49.9

26.5

<48.7>The Bank is contributing to our

The Bank has nothing to do with

22.4

our lives.

<22.7>

34.8

42.4

The Bank is not contributing to

21.5

lives.

our lives.
<32.2>

The

Bank

gives

clear

3.8

<22.0>

28.2

explanations to the public.

public are not clear enough.

<67.7><3.4>

31.8 <27.9>

I have confidence in the Bank.

The Bank’s explanations to the

66.6

48.8

18.2 <18.8>

I do not have confidence in the
bank.

0%

20%

Close to A

40%

60%

80%

Neither A nor B

Close to B

Note: 1. Figures in parenthesis are results of the previous survey (September 2003).

21

100%

IV. Complete Questionnaire and Results
Note
Bold numbers refer to the rate of responses for each menu of choices against total respondents
for each question (percent; the second decimal place is rounded off1).
1. Because of rounding, response ratios do not add up to 100 percent even for questions that allow for
only one choice.

Question 1
In your opinion, has the Japanese economy been improving or worsening compared with one
year ago? (Choose one answer.)(a) Improving.
9.5(b) Remaining the same.
56.5(c) Worsening.
34.0
Question 2
What makes you think so? (Choose up to two answers.)(a) Media reports.
(b) Economic indicators and statistics.
(c) Business performance of the company I work for, or of
my own company.
(d) My, or other family members’, income level.
(e) Bustle of shopping streets and amusement quarters.
(f) No reason in particular.
(g) Other.

28.1
11.6
36.0
43.2
26.6
6.4
2.7

If you chose (c) for Question 1, please answer Question 3. Otherwise, please skip Question 3
and go on to Question 4.
Question 3
With regard to current economic conditions, which of the following best represents yourimpressions? (Choose all applicable answers.)(a) The economy will eventually recover through firms’ own efforts.
15.5(b) The conditions must be endured in order to reform the economy and14.7
social structure.
(c) My own living concerns are not seriously affected.
20.2(d) This is the most serious recession ever experienced and it seems that
57.8
individual firms’ efforts are not enough to overcome the problem.
(e) Other.
11.7

22

(For all respondents.)
Question 4
How do you foresee economic conditions one year from now? (Choose one answer.)(a) Will improve.
13.8(b) Will remain the same.
69.5(c) Will worsen.
16.3
Question 5
What do you think about the current interest rate level? (Choose up to two answers.)(a) I hope it will stimulate business activity and thereby lead to an economic
recovery.
(b) Even at the current level, we cannot expect an economic recovery.
(c) It has negatively affected my household by reducing interest income on
deposits and others.
(d) I don’t have many complaints because stable prices secure principal of deposit
even though interest income has decreased.
(e) Low interest rates are helpful in alleviating the financial burden because I am
planning to apply for, or repay, a housing loan.
(f) Other.

42.2
39.2
48.7
9.0
9.9
3.1

Question 6
How has your income (or other family members’ income) changed from one year ago?
(Choose one answer.)(a) Has increased.
5.0(b) Has remained the same.
44.4(c) Has decreased.
50.2
Question 7
What do you expect your income (or other family members’ income) will be one year fromnow? (Choose one answer.)(a) Will increase.
5.5(b) Will remain the same.
54.3(c) Will decrease.
40.0
Question 8
How have you (or other family members) changed spending patterns compared with one year
ago? (Choose one answer.)(a) Have increased.
5.8(b) Have neither increased nor decreased.
48.1(c) Have decreased.
45.4
If you chose (a) in Question 8, please answer Question 8-(a). If you chose (c), please answer
Question 8-(b). Otherwise, please skip questions 8-(a) and 8-(b) and go on to Question 9.

23

Question 8-(a)Why have you increased your (or other family members’) spending? (Choose all applicableanswers.)(a) Because my income has increased.
13.9(b) Because my income is likely to increase in future.
4.8(c) Because tax cuts and other factors have lessened the household budget burden.
0.6(d) Because pension and social security payments are expected to increase.
7.9(e) Because the value of purchased real estate such as a house has increased.
1.2(f) Because the value of purchased financial assets such as stocks and bonds has
1.8
increased.
(g) Because loan payment amounts have decreased due to low interest rates.
0.6(h) Because I decided not to buy a house (or else postponed plans).
0.6(i) Because there are goods and services I want to purchase.
24.2(j) Because I made a big purchase in the past twelve months.
64.8(k) No reason in particular.
4.2
Question 8-(b)Why have you decreased your (or other family members’) spending? (Choose all applicableanswers.)(a) Because my income has not increased or has been decreasing due to recession or 42.5
restructuring.
(b) Because I fear a future job loss or decline in income.
57.8(c) Because I fear future cuts in pension and social security payments.
62.2(d) Because I fear a tax increase or rise in social security burden.
45.0(e) Because the asset value of real estate purchased such as a house has decreased as 7.5
I pay back housing loans.
(f) Because the value of purchased financial assets such as stocks and bonds has 4.4
decreased.
(g) Because interest income has decreased due to the low interest rates.
17.6(h) Because there are only few goods or services I want to purchase.
6.8(i) Because there happened to be no big purchases during the past twelve months.
4.0(j) No reason in particular.
1.0

24

(For all respondents.)
Question 9
Spending is divided into two categories, as shown below. Please select the best description ofyour spending attitude from (a) to (e) for each category of spending. (Choose one answer foreach category.)
Category 1. Everyday spending such as on living and educational expenses
Category 2. Selective spending such as on hobby and leisure activities (spending that is
separate from category 1)(a) Have decreased spending.
(b) Have unintentionally decreased spending.
(c) Unchanged.
(d) Have unintentionally increased spending.
(e) Have increased spending.

Category 1
25.2
27.6
33.1
12.2
0.7

Category 2
35.1
31.8
26.3
3.5
1.8

Question 10
Do you plan to increase or decrease your spending within the next twelve months? (Choose
one answer.)(a) Will increase.
1.6(b) Will neither increase nor decrease.
56.2(c) Will decrease.
41.7
Question 11
What will be your incentive to spend? (Choose all applicable answers.)(a) Income tax cut.
(b) Consumption tax cut.
(c) Tax incentive measures for those with housing or education loans.
(d) Dispelled fears of unemployment or an income decline.
(e) Dispelled fear of financial system uncertainty.
(f) Presentation of pension system and fiscal policy reform plans that clarify future
public burden.
(g) Dispelled life-after-retirement concerns through expansion of the nursing caresystem; for example, creation of a publicly financed nursing program.
(h) Rise in interest rates on deposits.
(i) Dispelled fear of deflation.
(j) Other.
(k) I do not plan to increase spending.

25

32.8
30.9
12.6
44.3
13.8
41.9
35.3
31.2
13.4
2.0
10.7

Question 12
Which of the following best describes your spending attitude? (Choose up to two answers.)(a) Basically, I spend more if my income increases.
62.8(b) It depends more on whether there is greater uncertainty over the future income
42.4level rather than the current level.
(c) It depends on the forecast for developments in the prices of goods and costs of
8.8
services.
(d) It depends on real estate price developments because I own a house and/or other
4.5
real estate.
(e) It depends on stock price developments because I have stocks and/or
3.8
investment trusts.
(f) It is affected by tax and social insurance premiums because they
34.1
decrease/increase my actual income.
(g) It depends on whether there are goods and services I want to purchase.
12.7(h) It depends on whether new and similar products are introduced to the market
3.6
over a short cycle and prices change in a short period.
Question 13
How do you think prices1 have changed compared with one year ago? (Choose one answer.)(a) Have gone down significantly.
2.4(b) Have gone down slightly.
22.2(c) Have remained almost unchanged.
60.7(d) Have gone up slightly.
12.9(e) Have gone up significantly.
1.6
Note: 1. They are defined as overall prices of goods and services you purchase (hereafter thesame).
Question 14
By what percent do you think the prices have gone up or down compared with one year ago?
Please fill in the appropriate box below with a specific figure. If you think that they havebeen unchanged, please put a “0” in either box.
gone up about

percent.

gone down about

percent.

Compared with one year ago, the prices have

Average1: -0.3 percent
Median2: 0.0 percent
Notes: 1. Calculated by excluding 0.5 percent of the highest and the lowest figures,
respectively, in order to avoid extremes (the simple average is minus 0.2 percent).

26

2. The number that appears in the middle when the answers are listed in numericalorder.
If you chose (a) or (b) in Question 13, please answer Question 15. Otherwise, please skip
Question 15 and go on to Question 16.
Question 15
What is your opinion of the declining prices? (Choose one answer.)(a) Rather favorable.
43.8(b) Rather unfavorable.
18.7(c) Neither favorable nor unfavorable.
36.1(For all respondents.)
Question 16
In which direction do you think prices will move one year from now? (Choose one answer.)(a) Will go down significantly.
0.6(b) Will go down slightly.
9.1(c) Will remain almost unchanged.
59.4(d) Will go up slightly.
28.9(e) Will go up significantly.
1.3
Question 17
By what percent do you think the prices will go up or down one year from now? Please fill in
the appropriate box below with a specific figure. If you think that they will be unchanged,
please put a “0” in either box.
go up
The prices one year from now will
go down

percent
compared with the present.
percent

Average1: 1.2 percent
Median2: 0.0 percent
Notes: 1. Calculated by excluding 0.5 percent of the highest and the lowest figures,
respectively, in order to avoid extremes (the simple average is 1.2 percent).
2. The number that appears in the middle when the answers are listed in numerical order.

27

Question 18
In which direction do you think the prices will move over the next five years? (Choose one
answer.)(a) Will go down significantly.
0.9(b) Will go down slightly.
10.3(c) Will remain almost
32.2
unchanged.
(d) Will go up slightly.
47.9(e) Will go up significantly.
6.6
Question 19
By what percent do you think the prices will go up or down every year on average over the
next five years? Please fill in the appropriate box below with a specific figure. If you thinkthat they will be unchanged, please put a “0” in either box.
go up
The prices will
go down

percent
every year on average over the next five years.
percent

Average1: 1.7 percent
Median2: 0.2 percent
Notes: 1. Calculated by excluding 0.5 percent of the highest and the lowest figures,
respectively, in order to avoid extremes (the simple average is 1.7 percent).
2. The number that appears in the middle when the answers are listed in numerical order.
Question 20
What do you foresee as the future development in land prices? (Choose one answer.)(a) Will rise in the near future because the current level is very low.
13.8(b) Will remain at about the current level for some time, as this is an appropriate 40.9
level.
(c) Will continue to drop because the current level is still too high.
15.4(d) Don’t know.
29.2
Question 21
What do you think about your household circumstances compared with one year ago?
(Choose one answer.)(a) Have become somewhat better off.
5.2(b) Have become somewhat worse off.
50.7(c) Hard to say.
43.6

28

If you chose (a) in Question 21, please answer Question 21-(a). If you chose (b) in Question
21, please answer Question 21-(b). For remaining respondents, please skip questions 21-(a)and 21-(b) and go on to Question 22.
Question 21-(a)Why do you think your household circumstances have become better off? (Choose allapplicable answers.)(a) Regular income such as salary has increased.
47.6(b) Other income such as interest income has increased.
1.4(c) Gained special income from sales of real estate such as land and houses.
0.0(d) Abandoned or postponed plans of purchasing a house.
1.4(e) Prices have declined or remained stable.
23.1(f) The value of assets held such as stocks and real estate has increased.
3.4(g) The number of dependents in my family has decreased.
26.5(h) Other.
23.1
Question 21-(b)Why do you think your household circumstances have become worse off? (Choose allapplicable answers.)(a) Regular income such as salary has decreased.
75.1(b) Other income such as interest income has decreased.
18.5(c) Purchased or plan to purchase real estate such as land and houses.
6.3(d) Prices have increased.
11.7(e) The value of assets held such as stocks and real estate has declined.
6.3(f) The number of dependents in my family has increased.
10.9(g) Other.
20.1(For all respondents.)
Question 22
What do you believe is the Japanese economy’s growth potential? (Choose one answer.)(a) Has potential to grow more in the long run, though there may be a
19.0
temporary slowdown.
(b) Cannot expect significant growth in the long run.
53.3(c) Cannot say.
27.3
Question 23
In the past year, has the company you (or other family members) work for taken or planned totake restructuring measures related to salary payments and employment? (Choose one
answer.)(a) Yes.
33.9(b) No, but it has been planning to do so in future.
10.6(c) No, and it seems there is no plan to do so.
24.0(d) Don’t know.
30.5

29

If you chose (a) or (b) in Question 23, please answer Question 23-(a). Otherwise, please skip
Question 23-(a) and go on to Question 24.
Question 23-(a)Specifically, what kind of restructuring measures were taken or are to be taken by thecompany for whom you (or other family members) work? (Choose all applicable answers.)(a) Cut in overtime work.
35.3(b) Cut in salary and review of the wage system.
68.0(c) Restrained recruiting of new graduates.
21.9(d) Reduction in personnel through dispatching them to other companies and 34.7
encouraging early retirement.
(e) Reduction in job positions, as well as organizational reform.
22.0(f) Review of personnel or qualification system.
19.3(g) Introduction of worksharing.
3.7(h) Other.
5.8(i) Restructuring is planned but don’t know the details.
2.1(For all respondents.)
Question 24
Are you worried about your (or other family members’) employment or work arrangements(pay, job position, and benefits) at the current workplace? (Choose one answer.)All
Workers1
respondents(a) Not particularly worried.
14.2
16.1
(b) Slightly worried.
43.5
50.3
(c) Quite worried.
26.4
29.9
(d) Has no relevance to me or my family.
15.0
3.4
Note: 1. Workers who are company employees, civil servants, other types of employees, orpart-timers.
Question 25
Are you (or other family members) thinking of looking for a new job or otherwise re-entering
the workforce? (Choose one answer.)(a) Yes.
32.8(b) No.
66.6
If you chose (a) in Question 25, please answer Question 25-(a). Otherwise, please skip
Question 25-(a) and go on to Question 26.
Question 25-(a)Are you (or other family members) worried about looking for a new job or re-entering theworkforce? (Choose one answer.)(a) Not particularly worried.
7.3(b) Slightly worried.
37.4(c) Quite worried.
55.2

30

(For all respondents.)
Question 26
Do you have any concrete plans to purchase a house, or sell your current house and buy
another? (Choose one answer.)(a) No such plans at present.
93.4(b) Plan to purchase a house for the first time.
2.8(c) Plan to sell a house and buy another.
2.6(d) Plan to buy a second house.
0.7
Question 27
Are you repaying loans such as a housing or consumer loan? (Choose one answer.)(a) Yes.
34.0(b) No.
65.8

31

Questions 28 to 31 ask about your knowledge of the Bank of Japan (hereafter “the Bank”).
Question 28
The following 23 descriptions are of facts about the Bank including its policy and operations.
Please choose the most applicable level of your knowledge relative to these facts. (Choose
one answer for each description.)(a) Know very well.
(b) Familiar with.
(c) Have heard of it but do not have detailed knowledge.
(d) Have never heard of it.

(a)

(b)

(c)

(d)

(1)

The Bank issues Bank of Japan notes (banknotes) suchas 10,000 yen notes.

56.0

22.8

14.2

6.0

(2)

The Bank will introduce a new series of banknotes this
year.

23.4

23.6

20.2

32.0

(3)

The Bank accepts deposits from commercial financial
institutions in its current accounts.

16.2

22.7

29.8

30.1

(4)

Commercial financial institutions settle fund transfers
among themselves using current accounts at the Bank.

11.5

19.1

32.7

35.4

(5)

The Bank operates a computer network called the Bankof Japan Financial Network System (BOJ-NET) toensure safe and efficient settlement of funds andJapanese government securities (JGSs).

4.8

9.9

31.0

53.1

(6)

The Bank provides settlement services for treasury
funds such as taxes and pension.

10.3

20.2

33.9

34.2

(7)

The Bank provides services related to JGSs.

14.5

24.2

38.2

21.8

9.6

16.6

31.6

41.1

7.5

15.5

31.4

44.3

(8)

(9)

The Bank, in implementing monetary policy, has set thequantity of money (the outstanding balance of the current
accounts at the Bank) as its operational target, rather than
the interest rate level.
The Bank supplies a large amount of funds to financial
institutions through purchases of JGSs held by theinstitutions.

32

(a)

(b)

(c)

(d)

(10)

The Bank purchases asset-backed securities (ABSs) topromote smooth corporate financing for small andmedium-sized enterprises.

2.2

5.8

26.9

63.8

(11)

The Bank no longer uses the official discount rate as its
major tool of monetary policy.

5.0

15.2

34.8

43.8

8.3

18.4

32.6

39.4

10.6

21.6

35.2

31.2

12.9

18.0

28.8

38.6

[Continued from the previous page]

(12)

(13)

(14)

The Bank either keeps close contact with eachindividual financial institution or conducts onsite
examinations to obtain information on their
management.
The Bank may act as the lender of last resort and provide
funds to financial institutions in order to maintainfinancial stability.
The Bank researches and analyzes economic andfinancial developments; for example, through surveys
such as the Tankan (Short-Term Economic Survey ofEnterprises in Japan).

(15)

The Bank studies theoretical aspects of monetary andeconomic issues.

8.3

15.1

29.5

45.9

(16)

The Bank compiles and releases statistics on monetary
aggregates and prices.

10.5

17.8

32.7

37.8

(17)

The Bank intervenes in the foreign exchange market as
an agent of the Minister of Finance.

13.0

17.4

29.7

38.8

(18)

The Bank engages in a wide range of internationaltransactions with overseas central banks andinternational organizations.

7.5

13.8

33.5

43.8

(19)

The Bank transfers most of its profits to the nationaltreasury.

7.2

14.2

30.0

47.0

(20)

The Bank is an organization independent from thegovernment.

12.9

17.4

27.0

41.5

(21)

The Bank’s important decisions are made by the Policy
Board.

5.8

8.6

26.4

57.9

(22)

The Bank’s missions are to maintain “price stability”
and “financial system stability.”

10.8

22.0

30.9

35.0

(23)

The Bank has branches across Japan.

18.7

19.5

20.1

40.7

33

Question 29
The following table indicates five pairs of contrasting views on the Bank. Toward which end,
A or B, is your view closer? (Choose one answer for each pair.)(a) Close to A.
(b) Somewhat closer to A.
(c) Neither A nor B.
(d) Somewhat closer to B.
(e) Close to B.
A
I know very wellabout the Bank’s
1policy andoperations.

(a)

(b)

(c)

(d)

(e)

B

2.2

12.0

20.1

28.4

36.2

I know almost
nothing about theBank’s policy andoperations.

The Bank is related
to our lives.

17.3

32.6

26.5

12.4

10.0

The Bank has
nothing to do with
our lives.

The Bank is
3 contributing to ourlives.

10.0

24.8

42.4

12.0

9.5

The Bank is notcontributing to ourlives.

2

The Bank gives
4 clear explanations to
the public.

0.6

3.2

28.2

28.2

38.4

I have confidence in
the Bank.

11.7

20.1

48.8

9.7

8.5

5

The Bank’s
explanations to the
public are not clear
enough.
I do not haveconfidence in the
Bank.

Question 30
What is your major source of information about the Bank? (Choose all applicable answers.)(a) Newspapers.
68.1(b) Magazines.
9.4(c) TV and radio.
70.4(d) Books in general.
3.5(e) The Bank’s publications.
0.9(f) Internet.
4.2(g) The Bank’s Web site.
1.3(h) Comments of scholars, politicians, and people within the business sphere.
15.7(i) Conversations with friends, family, and relatives.
5.9(j) Have hardly seen or heard any information about the Bank.
12.9

34

Question 31
Please freely give us your comments or express wishes relative to the Bank’s policy and/or
operations.
(a) Offered comments.
15.1(b) Offered no comments.
84.9

35

(For all respondents.)
Q1
Are you male or female?
(a) Male.
49.1(b) Female.
50.9
Q2
What age group are you in?
(a) 20–29.
(b) 30–39.
(c) 40–49.
(d) 50–59.
(e) 60–69.
(f) 70–.

11.1
16.5
17.8
22.0
18.6
14.1

Q3
What is your field of occupation? (Choose one answer.)
Self-employed or working for a family business(a) Agriculture, forestry, and fisheries.
3.2(b) Self-employed, working for a family business, or
professional worker.
12.1
All other workers(c) Company employee, civil servant, or other type37.1
of employee.
(d) Part-timer.
12.3
Unemployed(e) Full-time homemaker.
14.7(f) Student.
1.8(g) Pensioner.
13.8(h) Other.
4.6

Q4
How much income did you (and your partner) earn last year? (Annual income before
deducting taxes; excludes temporary income such as retirement allowance and income fromland sales, but includes pensions.) (Choose one answer.)(a) No income.
4.1(b) Less than 3 million yen.
39.0(c) 3million or more but less than 5 million yen.
24.1(d) 5million or more but less than 10 million yen.
22.2(e) 10 million yen or greater.
5.1

36

Q5
How large is your family? (Choose one answer.)(a) I am single.
(b) Myself and my partner.
(c) Myself, my partner, and an unmarried child (unmarried children) who is (are)financially dependent.
(d) Other.

37

5.8
21.6
33.7
38.3