lack of research and development ( r & d ) investment. when firms become reluctant to make such investment, innovation is less likely to happen because the introduction of advanced technologies is delayed. thus, what is necessary for technological progress is to make investment for growth from a medium - to long - term perspective and make innovative efforts based on such investment. in this regard, it is a noteworthy sign that, in spite of the current severe economic environment, moves toward further digitalization have been seen at various levels of our country, including firms. in fact, software investment has remained steady compared with overall business fixed investment. it is very encouraging to see that firms have maintained their stance of creating innovation through such investment for growth. thus far, i have explained the key points to bring japan's economy back on a sustainable growth path from a medium - to long - term perspective based on labor input, capital input, and technological progress. of course, no one knows at this point what the so - called new normal economy will look like once the pandemic has subsided. however, as i talked about at this meeting in the past, when facing a significant change, firms can achieve substantial growth by being one step ahead and turning such change into opportunity. progress in efforts to address environmental issues with a view to achieving the sustainable development goals ( sdgs ) is one such example. i believe that many firms consider that addressing such issues will not only meet social demands but will also enhance their competitiveness in the social setting to come. i hope that firms will boldly take on the various challenges with a view to raising their future growth potential. conclusion today, i talked about developments in japan's economy, its outlook, the bank's response to covid - 19, as well as the efforts that are required when also looking ahead to the post - covid - 19 era. the pandemic has reminded us of the importance of social interaction. while people have taken advantage of using virtual tools to continue their daily communication, i believe that the craving for everyday uncomplicated, face - to - face interaction has been the driving force for such actions as the development of vaccines. such strong motivation can be a catalyst for great change. the challenge for us is how society as a whole can make the most of the harsh experience of covid - 19. as i have mentioned today, if we can turn economic changes into opportunities, i believe that japan's economy will not stagnate post - pan

sector initiatives to deal with structural problems and enhance market mechanisms. the current easy monetary policy consists of three elements. the first element is the provision of ample liquidity to the money market. as a result, concerns over liquidity have almost disappeared in the money market, and financial institutions can concentrate on their businesses without worrying about raising funds in the market. the second element is the policy commitment. the bank has made a commitment to continue the current policy until the year - on - year change in the cpi registers zero percent or higher on a sustainable basis. this commitment has facilitated market participants ’ projection of future interest rates, and market interest rates have been stable. firms have been able to enjoy a stable market environment in which they can raise funds at low interest rates. the current easy monetary policy is expected to have a stronger positive impact on economic activity in the private sector as the economy recovers further. given that the bank ’ s policy commitment allows firms to continue enjoying low funding costs and that the economic recovery raises the expected rate of return on new investment, firms ’ profitability on investment will increase. firms will become more proactive in seeking investment opportunities. banks will also benefit from increased opportunities for profit from lending and other financial services. with this impact in mind and with a view to overcoming deflation, the bank is determined to pursue the extremely easy monetary policy even as the economy continues to recover. the third element is the bank ’ s efforts to improve the transmission mechanism of monetary easing. it is important to promote new financing channels other than bank lending in order to ensure that the effects of monetary easing permeate throughout the economy. these efforts will also improve japanese capital markets over the long term. as part of these efforts, the bank started to purchase asset - backed securities ( abss ) from july 2003, and to date, the total accumulated amount of abs purchases has amounted to around 580 billion yen. the bank ’ s purchases of abss have stimulated the capital market, and abss, which had been little used in japan, are now becoming increasingly familiar. furthermore, the bank hosted a workshop on securitization to back the development of the securitization market, and exchanged views with market participants about practical problems and possible solutions to developing the market further. the bank released a report on the workshop in april, and proposed specific measures to evaluate the prices of securitized products more accurately and efficiently and to reduce costs related to the structuring and trading of these products. the