( chart 4 ). looking at the list of projects may leave an impression that it is an all - around list of challenges facing japan's economy. i believe that what the economy needs now is to implement various initiatives simultaneously to overcome many such challenges. what i mean is that, while these initiatives may look like " a little bit of everything, " firmly promoting them in order to achieve economic revitalization in an omnidirectional manner, and thereby revitalizing japan's economy, is necessary. i think that this will lead to an increase in growth expectations, and ultimately to a rise in inflation expectations. for japan's economy, the third largest in the world, ending deflation and returning to a sustainable growth path will also have significant meaning for the global economy. the bank will maintain highly accommodative financial conditions, with a view to achieving the price stability target of 2 percent, and ensure the overcoming of deflation. i believe that highly accommodative financial conditions, combined with the initiatives of the public and private sectors just mentioned, will give a boost to firms'investment and efforts for improving productivity. let me conclude by emphasizing that ensuring the exit from deflation in japan will lead to a more dynamic and stronger economy. thank you for your attention. japan's economy and monetary policy march 8, 2017 takako masai bank of japan chart 1 1999 年 2 月 「 セロ 金 [UNK] 政 [UNK] 」 の [UNK] [UNK] changes in the bank's monetary policy management feb 1999 introduction of the zero interest rate policy （ - aug 2000 ） mar 2001 introduction of the quantitative easing policy （ - mar 2006 ） mar 2006 release of " the bank's thinking on price stability " dec 2009 release of " clarification of the'understanding of medium - to longterm price stability'" oct 2010 introduction of the comprehensive monetary easing policy feb 2012 introduction of the " price stability goal in the medium to long term " jan 2013 introduction of the " price stability target " of 2 percent [UNK] release of " joint statement of the government and the bank of japan on overcoming deflation and achieving sustainable economic growth " apr 2013 introduction of quantitative and qualitative monetary easing ( qqe ) oct 2014 expansion of qqe jan 2016 introduction of qqe with a negative interest rate sep 2016 introduction of qqe with yield curve control chart 2 mechanism of qqe quantitative and qualitative monetary easing ( qqe ) large -

scale purchases of jgbs decrease strong and clear commitment to achieve the price stability target of 2 percent increase ⇒ ⇒ ⇒ nominal interest rates － inflation expectations [UNK] real interest rates decrease improvement in the economy and increase in prices chart 3 consumer prices y / y % chg. cpi ( all items less fresh food and energy ) cpi ( all items less fresh food ) - 1 - 2 - 3 cy 07 notes : 1. figures for the cpi ( all items less fresh food and energy ) are calculated by the research and statistics department, bank of japan. 2. figures for the cpi are adjusted to exclude the estimated effects of changes in the consumption tax rate. source : ministry of internal affairs and communications. chart 4 the 10 strategic public - private joint projects toward gdp of 600 trillion yen 1. the fourth industrial revolution 2. toward a world leading healthcare country 3. overcoming environmental and energy constraints and expanding investments 4. changing sports to a growth industry 5. revitalizing markets for transaction of existing houses and reform 6. improving productivity in the service industry 7. bringing about revolution among small and medium - sized firms and micro firms 8. promoting proactive agriculture, forestry and fishery, as well as reinforcing exports 9. realizing japan as a tourism - oriented country 10. taking measures to stimulate domestic consumer sentiment source : " japan revitalization strategy 2016 " ( cabinet decision, june 2, 2016 )