. yen ratio to total assets, % large enterprises ( left scale ) small and medium - sized enterprises ( left scale ) ratio to total assets ( large, right scale ) ratio to total assets ( small and medium, right scale ) fy - end 85 note : based on the financial statements statistics of corporations by industry, annually. excluding " finance and insurance. " large enterprises are defined as enterprises with a capitalization of 1 billion yen or more, and small and medium - sized enterprises are defined as enterprises with a capitalization of less than 1 billion yen. source : ministry of finance. chart 10 qqe with yield curve control yield curve control inflation - overshooting commitment inflation rate 1. 2 % 1. 0 0. 8 2 % 0. 6 0. 4 jgb yield curve short - term policy interest rate " minus 0. 1 percent " target level of the long - term interest rate " around zero percent " 0. 2 0. 0 - 0. 2 - 0. 4 expansion of monetary base continues source : bloomberg. 0 1 2 3 4 5 6 7 8 9 10 15 20 year residual maturity chart 11 fiscal conditions in japan amount outstanding of government debt fiscal balance and primary balance ratio to nominal gdp, % points y / y % chg. acceleration in the pace of fiscal austerity ( decline in fiscal deficit ) ratio to nominal gdp, % ratio to nominal gdp, % - 1 - 1 - 2 - 2 - 3 - 3 gross government debt ( left scale ) fiscal balance ( y / y chg., left scale ) - 4 primary balance ( y / y chg., left scale ) - 5 - 6 fy 08 - 4 - 6 note : the primary balance is boj staff calculations. sources : cabinet office ; imf, etc. net government debt ( right scale ) - 5 real gdp ( right scale ) cy 08 chart 12 fiscal conditions in the euro area amount outstanding of government debt fiscal balance, primary balance, and structural balance y / y % chg. ratio to nominal gdp, % points acceleration in the pace of fiscal austerity ( decline in fiscal deficit ) - 1 - 1 - 2 - 2 - 3 fiscal balance ( y / y chg., left scale ) - 3 - 4 primary balance ( y / y chg., left scale ) - 4 - 5 gross government debt ( left scale ) cy 08 note : the structural balance is the year - on - year rate of change in the

the available evidence, i tend to give less weight to the questions concerning the financial situation of households than i do to the risks of continued uncertainty in the business sector. a third question bearing on the outlook for the u. s. economy regards prospects for a pickup in activity among our major trading partners. concerns about the strength of the global economy remain, and the emergence of sars poses a threat to the economic prospects of several emerging - market economies in asia. to date, however, we have no evidence that the new disease has affected u. s. economic activity. nonetheless, continued slow growth abroad could have a damping effect on our recovery here. to summarize, the recent news from oil and financial markets and about consumer confidence clearly suggests that the reduction in risks associated with the situation in iraq has had a number of favorable effects. at the same time, the available indicators of production and employment suggest that the pace of economic activity may remain slow for a while longer, likely restrained by lingering uncertainty about the timing of economic recovery. looking ahead, however, it seems likely that, at some point the combined effects of a fundamentally solid financial sector, sustained consumer spending power, and improving consumer confidence will demonstrate sufficient demand potential to stimulate increased levels of capital investment.