, in response to changes in the environment. however, there has been absolutely no change in its commitment to achieving the price stability target of 2 percent at the earliest possible time. i believe that " qqe with yield curve control, " consisting of an " inflation - overshooting commitment " and " yield curve control, " is the best possible framework that we can devise at present, given the situation in japan - - the formation mechanism of inflation expectations, transmission channels of monetary easing, and the conditions in the financial system. under this framework, the bank will realize the maximum effects of monetary easing. thank you very much for your attention. " quantitative and qualitative monetary easing with yield curve control " : after half a year since its introduction speech at a reuters newsmaker event in tokyo march 24, 2017 haruhiko kuroda governor of the bank of japan chart 1 developments in international financial markets crude oil prices ( wti ) stock prices in major economies the beginning of 2014 = 100 japan ( nikkei 225 stock average ) united states ( s & p 500 ) $ / bbl europe ( euro stoxx 50 ) jan - 14 jul - 14 source : bloomberg. jan - 15 jul - 15 jan - 16 jul - 16 jan - 17 jan - 14 jul - 14 jan - 15 jul - 15 jan - 16 jul - 16 jan - 17 chart 2 inflation expectations after the introduction of qqe 2. 0 y / y % chg. beginning of a introduction of consumption downtrend in qqe tax hike crude oil prices 1. 8 synthetic indicator of firms ', households ', and economists'inflation expectations 1. 6 [UNK] [UNK] destabilization of financial markets amid concern about emerging economies [UNK] 1. 4 1. 2 1. 0 0. 8 0. 6 0. 4 0. 2 cy 07 notes : 1. inflation expectations of firms, households, and economists are represented by the tankan, the " opinion survey, " and the " consensus forecasts, " respectively. notes : 2. semiannual data from the " consensus forecasts " up through 2014 / q2 are linearly interpolated. " opinion survey " figures exclude inflation expectations by respondents whose annual inflation expectations were + 5 % percent or greater and - 5 % percent or smaller. the output prices di in the tankan represents the difference between the share of firms that raised prices in the preceding three months and the share of firms that lowered prices. sources :

risks and maintain clear, sufficient, and timely communication to avoid unintended outcomes. finally, to strengthen the safety net for crisis response, asean + 3 authorities could start discussing the future of the cmim, which has been in existence for more than 20 years now. the cmim has unique value as a regional self - help mechanism with regional ownership, which could help avoid the potential stigma associated with borrowing from the international monetary fund ( imf ). however, over the years, the region's economies and financial markets have grown significantly and become more integrated, both within the region and globally. in contrast to the simple balance of payment shortfalls of the past, any future crisis will likely be much more complex. while the asean + 3 members continue to build on the readiness and effectiveness of the cmim, the imf has adapted its lending framework and facilities and has provided financing to member countries in response to the covid - 19 pandemic shock. other regional financial safety nets have launched new instruments to support their members. it may be time to review the role and design of the cmim. adding a financing instrument to mitigate the impact of shocks may be one option to consider. for more than two decades now, the asean + 3 finance process has been successful in developing strong regional cooperation and providing the foundations for regional stability. i strongly believe that it is important to maintain the momentum of this cooperation while adapting to the changing environment. 3 / 4 bis - central bankers'speeches thank you. 4 / 4 bis - central bankers'speeches