gdp, %, cy 2016 business sector government sector others japan germany united france states china united kingdom notes : 1. in the left chart, figures for the left column are from " japanese science and technology indicators 2019, " nistep research material no. 283, national institute of science and technology policy, tokyo. figures for the right column are calculated by boj staff based on this material. 2. as for the left column in the left chart, the number of highly cited papers is the adjusted number of papers ranked in the top 10 percent in terms of citation counts in each field and each year. based on the fractional counting method. 2015 - 2017 average. 3. as for the right column in the left chart, figures for the united states, china, and japan are for 2017 ; those for the united kingdom and germany are for 2016 ; that for france is for 2015. sources : oecd ; national institute of science and technology policy. chart 12 iii. toward sustaining a virtuous cycle nominal wages and consumer prices scheduled cash earnings and base pay increase y / y % chg. consumer prices base pay increase scheduled cash earnings ( full - time employees ) introduction of qqe y / y % chg. cpi ( less fresh food and energy ) average from fy 2013 : + 0. 5 % - 1 - 2 - 1 fy 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 - 3 cy88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 average from fy 1998 through fy 2012 : - 0. 4 % note : in the right chart, figures are adjusted for the effects of the consumption tax hikes. figures incorporate the effects of the october 2019 tax hike and policies concerning the provision of free education. sources : ministry of health, labour and welfare ; central labour relations commission ; japanese trade union confederation ( rengo ) ; ministry of internal affairs and communications. chart 13 iii. toward sustaining a virtuous cycle households'tolerance of price rises and firms'price - setting stance output prices di for consumption - related industries households'tolerance of price rises di ( " favorable " - " unfavorable " ), % points di ( " rise " - " fall " ), % points firms'forecasts - 10 - 5 large enterprises - 20 small enterprises - 10 - 30 - 15 cy 83 - 40 cy07 notes : 1. in the left chart, figures

stick or twist? it is impossible to know for certain. but experience during the crisis is revealing. then, households in a number of countries exhibited acute risk - sensitivity and risk - aversion. for example, uk households responded to heightened market risk by reducing contributions to long - term savings products, such as life insurance and dc pensions. household net contributions to life insurance and pension funds fell from £54 billion in 2006 to £11 billion in 2008. this suggests some skittishness on the part of retail investors when faced with investment risk. in summary, over the course of the past decade or so, the asset management industry has fundamentally changed shape. it is now large and is set to get larger still. the assets it manages are increasingly being allocated into illiquid assets or indexed strategies. and the risks on these asset allocations are increasingly being borne by ( perhaps trigger - happy ) endinvestors. too - big - to - fail given this evolving structure, what risks to financial stability might the asset management industry pose? the financial crisis alerted us to the perils of banks that are “ too - big - to - fail ”. during the crisis, the collateral damage from big bank failure necessitated state bail - outs. these nourished the beast that had already eaten the farm. a variety of regulatory reforms are being put in place in an attempt to house - train this beast ( haldane ( 2012a ) ). some of this is a mirror - image of trends in the pensions industry, but the pattern is also evident for nonpension savings products. bis central bankers ’ speeches one natural question, then, is whether the asset management industry has spawned similar such behemoths. two relevant factors here are, first, the relative degree of concentration in the industry and, second, the scale of its largest players. table 1 shows the world ’ s top 10 largest asset managers and banks by asset size. the degree of concentration across the two industries is broadly similar. the top 10 asset managers account for just less than 30 % of the sector, the top 10 banks a little more than 20 %. their balance sheets are also similarly - sized. in aggregate, the top ten banks and asset managers total $ 20 trillion and $ 25 trillion in assets respectively. the world ’ s largest asset manager ( blackrock ) is around a third larger than the biggest bank ( icbc ). but, on the other side, nine of the top 10 banks are larger