survey framework. sources : ministry of internal affairs and communications ; national institute of population and social security research ; japan institute for labour policy and training ; bank of japan. chart 7 [UNK]. achievement of the 2 percent target and japan's economy results of large - scale corporate survey responses regarding difficulties of passing on higher costs to prices difficulties have eased responses regarding stance toward raising wages have taken a more active stance difficulties have not eased have not taken a more active stance manufacturing manufacturing nonmanufacturing nonmanufacturing % % notes : 1. results of the survey regarding corporate behavior since the mid - 1990s. respondents were asked about the present compared to the past. 2. in the left - hand chart, figures for " difficulties have eased " are calculated as 100 % - share of firms that responded that " difficulties have not eased. " 3. in the right - hand chart, figures for " have taken a more active stance " are calculated as 100 % - share of firms that responded that they " have not taken a more active stance. " source : bank of japan. chart 8 [UNK]. achievement of the 2 percent target and japan's economy gdp level real gdp nominal gdp s. a., ann., tril. yen cy 85 source : cabinet office. s. a., ann., tril. yen cy 85 chart 9 [UNK]. achievement of the 2 percent target and japan's economy results of large - scale corporate survey preferred state for firms'business activities reasons for preferring a state in which prices and wages rise moderately ease in passing on costs to prices and securing profits prices and wages rising moderately ease in adjusting selling prices and wages no need for cost cuts to avoid raising prices, enabling active fixed investment and wage hikes prices and wages hardly changing positive effects of higher wages on household sentiment and consumption decline in repayment burden of existing debt neither affects business activities more room for interest rates to decline in times of economic downturn smaller price gap between home and abroad, enabling stable exchange rates not sure other % % notes : 1. results of the survey regarding corporate behavior since the mid - 1990s. 2. in the right - hand chart, figures are shares of the firms that responded that a state of both " prices and wages rising moderately " is preferable in the left - hand chart. all applicable reasons were allowed. source : bank of japan. chart 10 [UNK]. achievement of the 2 percent target and monetary policy nominal and real interest rates 10 - year 1 - year

from the viewpoint of reforming japan's economy and industrial structure, which forms the basis of the economy, it is essential that new and innovative value - added products and services be created. it is important, therefore, for large numbers of entrepreneurs, the creators of new businesses, to emerge. the price discovery function of the market, pointed out earlier, comes into play in this connection. as a part of facilitating the environment, it is essential that risk capital be provided through the channel of the price discovery function to such entrepreneurs. the mediation of risk capital between investors and industries is one of the fundamental roles performed by the securities industry. needless to say, herein also lie major business opportunities. i would like to add here my expectation that the securities industry takes a further step forward in this regard now that there is felt to be an ever - increasing need for industrial restructuring. at the same time, there exists an undiminished expectation that the securities industry, as a major player in the financial markets, will continue in its efforts to further invigorate the markets. one of the means to achieve this objective would be the improvement in transparency and smooth functioning of the market by enhancing clarity in presenting risk - return relationships to customers of the securities firms. i believe that increased competition between securities companies and other financial institutions in providing varied and dependable credit intermediation services strengthens the financial system as a whole and thereby helps improve the structure of the economy. it is evident that securities companies themselves must improve their managerial capabilities if they are successfully to perform such an important role. at present, the stock market is showing some buoyancy in terms of both price and volume. i trust, however, that the securities industry will not loosen its resolve and that it will continue to target creativity and higher efficiency. the japanese economy as well as the financial system is still burdened with a number of difficulties. nevertheless, lights of hope, though dim at present, are on the horizon. the bank, for its part, will continue to do its utmost to ensure that these lights do not fade.