the covid - 19 pandemic : evidence from surveys ], economic review 73, no. 2 ( 2022 ) : pp. 133 - 59 ; uesugi, i., chusho kigyo kin'yu no keizaigaku : kin'yu kikan no yakuwari ; seifu no yakuwari [ economics of small business finance : the role of financial institutions ; the role of the government ] ( tokyo : nikkei publishing, 2022 ), pp. 43 - 47. 8 moreover, recent studies have shown that small and medium - sized firms with no debt, which do not rely on bank loans, have a rather small appetite for capital investment. see uesugi, chusho kigyo kin'yu no keizaigaku, pp. 35 - 38. would need to pursue policies to support the economy by further lowering market interest rates below the natural rate of interest. 9 c. revisiting the importance of inflation targeting earlier, i mentioned that the bank adopted the price stability target of 2 percent in 2013. here, i would like to explain the importance of inflation targeting once again. currently, the most important mandate for many central banks is to maintain price stability. inflation targeting clearly defines this mandate in quantitative terms, and many central banks around the world have adopted such targeting ( chart 15 ). theoretically, one could argue that other indicators, such as the nominal gdp growth rate, could be set as a policy objective. however, it is the inflation rate that most naturally relates to the mandate of maintaining price stability. 10 major central banks, such as the federal reserve and the ecb, also target a 2 percent inflation rate. ambiguity in this inflation targeting would make the objective of monetary policy vague, and therefore could undermine the transparency of monetary policy and its effectiveness. 11 this applies to dealing with not only deflation but also inflation. iii. recent and future economic activity in shizuoka prefecture before closing my speech, i would like to talk about the economy of shizuoka prefecture. the prefecture's economy is currently picking up as a trend, despite being affected by in his paper published in 1998, which advocated at an early stage for japan having more aggressive monetary easing, professor krugman assumes that japan's natural rate of interest is falling due to a declining birthrate. the paper suggests that macroeconomic policies are necessary especially when there are structural problems. see krugman, p. r.

and animal and plant extinction. in the form of disasters that threaten lives and livelihoods. nature and climate have gone rogue – in spain and in the netherlands, in europe and in the rest of the world. but - hope is the thing with feathers. 1 / 3 bis - central bankers'speeches to turn the tide, europe needs the green transition. sooner rather than later. but, of course, that costs money. the european commission estimates that a yearly additional investment of 350 billion euros is needed to meet the 2030 emissions - reduction target in energy systems. another estimated 130 billion euros is needed for other environmental goals ( refers to an external site ). in total, we are talking about 480 billion euros a year. both in terms of type of investment as in the sheer number, this is simply too much for the public sector alone. we need private investment. like equity financing. because more than debt financing, it is equity financing that will increase investments in green and innovative projects. because of the greater riskappetite of equity investors and their longer term investment horizon ( refers to an external site ). currently, however, european smes are heavily reliant on own funds and bank loans for their green and innovative projects. in the us, for example, they would be able to turn to venture capital. but that kind of market for risky investments doesn't exist here – at least not to the same degree ( refers to an external site ). as a result, successful, green, innovative companies lack funding for substantial growth. enter – indeed – a capital markets union. this would allow for a proper allocation of the necessary private investment for the green transition ( refers to an external site ). it would sustain investment flows. and it would strengthen our resilience to nature - and climate - related shocks. and this also works the other way around. today, sustainable finance products account for a small share of the euro area capital markets. but that share is growing. and that offers a leverage to foster a european capital markets union. because, compared to the aggregate bond market, the green bond market has a lower home bias. it shows a higher degree of integration. and euro area green bonds are held cross - border twice as likely as other bonds. green investment funds also have a more stable and committed investor base. and so, if green capital markets were to deepen further, sustainable finance could help advance financial integration in the european union. and remove the legal impedime