assessment of economic and price developments in their respective countries and regions. at the same time, it is also becoming more important than ever to make decisions after considering the complex interdependence of the different parts of the global economy. against a backdrop of increasing globalization, the task of maintaining financial system stability is equally important as monetary policy for a central bank. as can be seen in foreign exchange trading volumes, massive capital flows are moving around the globe beyond national borders. even without actual movements of capital, derivatives transactions transfer bis central bankers ’ speeches risks across borders. although some see such financial transactions negatively, given the progress in globalization in terms of the real economy and associated needs to hedge various risks associated with economic transactions, such as interest rate risk, foreign exchange risk and credit risk, simply dismissing financial transactions will not help to improve the situation. in addition, as evidenced by the sovereign debt crisis in europe, the very credibility of sovereign states is being questioned this year. in such circumstances, maintaining stability in the global financial system is becoming the most important prerequisite for global economic growth. on the topic of global financial system stability, while strong commitment by national governments is necessary, central banks have also been doing their utmost in this regard. one example is the coordinated actions by six central banks, including the bank of japan, regarding u. s. dollar liquidity, which were announced at the end of november. as a contingency measure, the central banks also agreed to establish bilateral swap arrangements so that liquidity in non - domestic currencies other than the u. s. dollar could also be provided in each jurisdiction. i should also add that central banks are contributing to the ongoing efforts to revise financial regulation and supervision frameworks to prevent recurrence of financial crises like the one in 2008, by preventing the accumulation of financial imbalances. the bank ’ s policy conduct finally, i will explain the bank ’ s recent conduct of monetary policy ( chart 16 ). first, the bank has been pursuing powerful monetary easing under the comprehensive monetary easing framework implemented in the fall of last year. the bank has also repeatedly expanded the size of the asset purchase program and intends to proceed with additional purchases of approximately 13 trillion yen over the next year. second, the bank has been doing its utmost to ensure financial market stability. its provision of ample funds immediately following the earthquake as well as the u. s. dollar fundssupplying operations i have just mentioned are good examples of such

response. for this response to be effective, it must be accompanied by national economic policy responses befitting the european action and the challenges we face. this response calls for the following : to maintain the support of fiscal policy to the economy, on a temporary basis, focusing on the groups of firms, sectors and individuals most affected and with a design that allows for the structural adjustments needed ; to convert the european funds into a fiscal impulse that accompanies and steers the recovery effort of our productive system ; to urgently implement an ambitious, comprehensive, lasting and assessable strategy of reforms that tackles the structural challenges of our economy ; and, finally, to design a medium - term fiscal consolidation programme, for gradual implementation once the economic crisis caused by the pandemic is behind us, that ensures the sustainability of our public finances and enables fiscal buffers to be built up for use in future recessionary episodes. the future well - being of our country depends on an economic policy strategy that combines these principles. thus, as i have stressed on other occasions, there should in my opinion be a high degree of consensus among the various political, economic and social agents regarding the guiding principles of this strategy, so that the foundations on which our growth rests are predictable and lasting. thank you.