of exports ( charts 12 and 13 ). based on these observations, we could say that japan ’ s economic recovery and stable economic growth generally have a positive impact on the rest of asia. bis central bankers ’ speeches iv. concluding remarks the bank has been conducting aggressive monetary easing since early april 2013, to overcome long - standing mild deflation and reinvigorate the economy. for its part, the government has implemented expansionary economic policy and unveiled economic growth strategies. i believe that japan can contribute to development in asia through its financial and trade activities as an asian country. moreover, japan ’ s experience at the forefront of rapid population aging has the potential to contribute to the region as well, since some other economies will soon face similar aging issues. to this end, the bank will do its utmost to revitalize japan ’ s economy and achieve sustainable economic growth. the bank will do its best to achieve the 2 percent price stability target. your understanding of the bank ’ s monetary policy is therefore greatly appreciated. thank you for your attention. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

partly due to accommodative monetary policy ) could be utilized to achieve a sustainable growth path in the region with high growth momentum – while enabling japanese investors to diversify their asset allocation. it would be a positive development if such funds originating from japan contributed to further deepening of financial and capital markets in the region. some economies in the region also face challenges of an inadequate infrastructure and a shortage of long - term capital. an increase in the circulation of funds used for productive purposes within the region could generate a “ win - win ” situation in asia as a whole, including japan. d. regional financial cooperation initiatives in asia underlying the expansion in capital inflows to emerging countries including those in asia are both pull factors ( that is, higher growth and yields ) and push factors ( that is, low interest rates and low growth in advanced countries, as well as investors ’ pursuit of higher profits ). with the latter factors in mind, economies have introduced a range of country - specific measures including macro - prudential regulations to respond to sudden capital inflows and outflows in emerging economies. thus far, there is no consensus on appropriate approaches to deal bis central bankers ’ speeches with such volatile capital flows. however, from a long - term perspective, it is important for asia to develop stronger domestic financial and capital markets ( denominated in local currencies ), especially markets for long - term capital funding. in this sense, the long - standing initiatives by governments and central banks to foster local currency - denominated bond markets – such as the asian bond markets initiative ( abmi ) and the asian bond fund ( abf ) – are highly significant. the amount outstanding of local currency bonds in asia has exceeded 7 trillion u. s. dollars, more than six times the level of ten years ago. the bond markets are now a valuable source of funding, for not only the public sector but also the private sector, which i view as favorable developments. to reduce the vulnerability of local bond markets, however, it is crucial to improve transparency of the markets and foster domestic institutional investors. in addition, it makes sense for asian economies to actively utilize their own savings for domestic productive purposes, provided that many of them enjoy surpluses in current account balances. from the viewpoint of monitoring capital flow movements and improving crisis prevention and management capacity in the region, i would like to stress the importance of the chiang mai initiative ( cmi ), later renamed the chiang mai initiative multi