the money stock has been around 2. 0 percent. as for developments in financial markets, money market conditions continue to be extremely easy, as the bank of japan continues to provide ample liquidity. in the foreign exchange and capital markets, the yen's exchange rate against the u. s. dollar and long - term interest rates have been around the same level as last month. meanwhile, stock prices rose significantly through mid - january, and later fell. they are currently above the level of last month. japan's economy is expected to deviate slightly above the outlook presented in the outlook for economic activity and prices ( the outlook report ) released in october last year, as both domestic and external demand continue to increase steadily. as for prices, domestic corporate goods prices are expected to deviate slightly above the outlook, reflecting the rise in international commodity prices and the depreciation of the yen in the second half of last year. meanwhile, consumer prices are projected to be broadly in line with the outlook. this report is based on data and information available at the time of the bank of japan monetary policy meeting held on january 19 and 20, 2006. the text of " the bank's view " was decided by the policy board at the monetary policy meeting held on january 19 and 20, 2006.

by the sluggish demand in business fixed investment, mainly in emerging economies. the continued decline in global demand for capital goods has had a significant negative impact on the manufacturing sector in japan, which has a comparative advantage in capital goods. with the slow trade continuing, advanced economies'exports to emerging economies have been sluggish, leading to lower production activities in the manufacturing sector. as the manufacturing sector tends to play a significant role in leading the business cycle in many economies, its slowdown has weighed on the recovery in advanced economies. in this situation, the recovery during the past few years in these economies - - the united states and europe in particular - - has been led largely by an acceleration in household expenditures amid a lack of momentum in corporate expenditures ( chart 5 ). fortunately, there have been signs of improvement recently. having been weak since 2015, the purchasing managers'index ( pmi ) - - which represents the overall business conditions in the manufacturing sector - - has improved clearly of late in the advanced economies as well as the emerging and commodity - exporting economies ( chart 6 ). looking at imports in emerging economies, those in the chinese and the asean economies bottomed out and then picked up. given that the weakness in emerging economies'imports had accounted for the major part of the slow trade, the ongoing recovery in their imports is likely to have a positive impact on a wide range of advanced economies'manufacturing sectors. on the macroeconomic policy front, aggressive monetary easing was introduced mainly in advanced economies by employing so - called unconventional measures such as quantitative easing ( qe ) - - or large - scale purchases of assets including government bonds - - and the negative interest rate policy. with regard to fiscal policy, the g - 20 countries provided strong fiscal stimulus in a coordinated manner immediately after the start of the global financial crisis. thereafter, some countries - - those in europe in particular - - conducted fiscal policies in a neutral or somewhat contracting manner for a while. this year, with the heightening of global uncertainties, the g - 20 and the imf agreed to take a three - pronged approach that uses all policy tools - - monetary, fiscal, and structural - - individually and collectively, with a view to achieving strong, sustainable, balanced, and inclusive growth. in fact, the authorities in each economy have been supporting their respective economic growth. let me summarize the recent developments in the global economy. the growth momentum has been picking up in emerging economies ; in advanced economies