raising labor productivity through technological advances is essential. this is basically the purview of individual private firms and their efforts in the areas of research and development and the improvement of business and production processes. the for more details, see fukunaga, i. et al., " wage developments in japan : four key issues for the post - covid - 19 wage growth, " bank of japan working paper series, no. 23 - e - 4 ( march 2023 ). for a study on external and internal pressure on wages, see furukawa, k., hogen, y., and kido, y., " labor market of regular workers in japan : a perspective from job advertisement data, " bank of japan working paper series, no. 23 - e - 7 ( april 2023 ). role of monetary policy is simply to encourage these endeavors by providing accommodative financial conditions. 8 it is important to note, however, that japanese firms have by no means neglected to make such efforts. in the 2010s, at least, although japan's economic growth rate as a whole clearly remained only moderate, owing to ongoing declines in the population and in working hours, japan nevertheless outperformed the united states in terms of gdp growth per hour worked ( chart 17 ). these developments suggest the real likelihood of continued steady growth in japan's economy, accompanied by productivity gains. the fundamental issue lies in the fact that the zero price and wage norm has become entrenched in japan over a prolonged period of deflation and excessively low inflation, and the fact that we have not yet achieved a virtuous cycle between prices and wages. the bank, for the time being, should carefully assess whether or not this norm is on the verge of being shifted. thank you. some economists argue that monetary policy brings about positive effects on productivity indirectly. for example, according to the theory of high - pressure economics put forth by arthur m. okun and janet l. yellen, if macroeconomic policies bring about tighter labor market conditions, investment in labor saving will expand, which will result in a further increase in labor productivity ( see also chart 16 ). for more details, see arthur m. okun, " upward mobility in a high - pressure economy, " brookings papers on economic activity, no. 1 ( 1973 ), and janet l. yellen, " macroeconomic research after the crisis, " remarks at the 60th annual economic conference sponsored

haruhiko kuroda : international financial regulation and supervision - past achievements, current issues, and future agendas remarks by mr haruhiko kuroda, governor of the bank of japan, at the 2019 paris europlace international financial forum, tokyo, 28 november 2019. * * * introduction i am very honored to have the opportunity to speak at the paris europlace financial forum again this year. this is a valuable forum for exchanging ideas on interesting topics such as global financial regulation, financial innovation, and esg, which are featured today. the forum also plays an important role in promoting paris as a financial center. turning to tokyo, there is an ongoing effort to realize “ tokyo ’ s vision for a global financial city ” and mr. nakaso, who appeared as a speaker earlier today, is leading this effort as chairman of the organization of global financial city tokyo. i think this is a valuable opportunity for interaction between the global financial centers of tokyo and paris. over the past three years, i have talked about future challenges, such as financial innovation and demographic changes. this year, i will change focus slightly and look back on the discussions on regulation and supervision in the wake of the global financial crisis, and then discuss issues that are currently of particular importance. i would also like to touch on issues that are likely to increase in importance in the future. i. past, present, and future of international financial regulation and supervision since the global financial crisis, financial institutions around the world have increased their capital adequacy ratios under new international financial regulations, such as basel iii. these regulations have been discussed and formulated by authorities worldwide and have helped increase the robustness of the global financial system. however, looking back on history, financial crises have repeatedly occurred in different forms, often with the advent of new financial technologies. as we are not crystal gazers and cannot foresee the future completely, we need to identify risks to the financial system in as forwardlooking a manner as possible. based on a deep understanding of our past experience, we must monitor the progress of new financial innovation and changes in the environment surrounding financial institutions. we then need to design international financial regulations so that any risks identified do not lead to the next financial crisis. even after global financial regulations have been carefully formulated and implemented, their effectiveness may be impaired by progress in financial technology and changes in the business environment. there is also the risk of unintended negative side effects that may demand further intervention