of qqe, has declined and recently registered 3. 3 percent, a low level last seen in 1997, accompanying increases in both the labor force participation rate and the number of employees ( chart 3 ). given that there is always a mismatch to some extent between job openings and job applicants in the labor market, the unemployment rate cannot go down to 0 percent. estimating based on the past relation between job openings and job applicants in japan, the recent unemployment rate of 3. 0 – 3. 5 percent could be regarded as almost corresponding to “ full employment. ” as labor market conditions are tight, nominal wages have been increasing moderately, albeit with some fluctuations. in the annual labormanagement wage negotiations this spring, many firms increased wages, including base pay, which was raised to a larger extent than last year ( chart 4 ). this development has even spread to small firms. since the number of employees has been increasing and nominal wages per employee have risen, overall employee income has been increasing moderately. in terms of household spending, private consumption is somewhat sluggish recently, reflecting bad weather in the april - june quarter. nevertheless, as the employment and income situation has continued with its steady improvement and consumer sentiment is on an improving trend, private consumption seems to have remained resilient on the whole. looking ahead, with no consumption tax hikes this fiscal year – unlike last fiscal year – and crude oil prices declining on an annual basis, wage increases are expected to exceed price increases and thereby real wages are expected to rise. in this situation, private consumption is expected to be more resilient. housing investment, the other component of household spending, having declined following the front - loaded increase prior to the consumption tax hike, has picked up evidently since the turn of the year against the backdrop of steady improvement in the employment and income situation. the pick - up is likely to continue going forward. exports and overseas economies second, i would like to touch on exports and overseas economies. exports had increased for three quarters in a row since the july - september quarter of 2014, but have recently been more or less flat, due mainly to the effects of the slowdown in emerging economies ( chart 5 ). bis central bankers ’ speeches they are expected to remain more or less flat for the time being, but after that, they are likely to increase moderately, supported by the correction of the appreciation of the yen to date as emerging economies move out of their deceleration phase. looking closely

adequacy ratio as a result. furthermore, if many financial institutions intend to raise regulatory capital adequacy ratios at this juncture in order to avoid such disadvantage, the real economy will be adversely affected. when reviewing financial regulation and supervision in the future, the role of capital regulation will definitely be an important issue on the agenda. aside from such a general point, it is also necessary to take into account that, during a financial crisis, the regulatory framework of capital adequacy ratio should not amplify pro - cyclicality. closing remarks i have so far expressed my views on the steps to cope with a financial crisis. in closing, i will offer two thoughts with respect to financial crisis responses. first, it is necessary to make an objective assessment of what can be solved and what cannot be solved by policy responses to a financial crisis. both in terms of macroeconomic policy and financial system measures, to take prompt and bold measures to address a financial crisis is not easy for any country, but is quite important. without those measures, the economies will be forced to experience heavy adjustments and might end up in a perfect storm. at the same time, however, crisis responses do not eliminate the excesses accumulated in the periods preceding the crisis. when those excesses are really massive, it will take long for the economy to return to a sustainable growth path. japan ’ s “ lost decade ” was partly attributable to such an element. if protectionism spreads triggered by intensified frustrations under such dire economic conditions, the economy ’ s potential growth rate itself might decline. in that regard, we also need to make a realistic assessment of the nature of the current crisis and limits of the crisis responses. second, in a financial crisis, it is critical to ensure cooperation between the authorities – the deposit insurance corporation, the central bank, and financial supervisory authorities – which are responsible for financial system stability. cooperation between each country ’ s authorities has also become increasingly important, reflecting the globalization of financial markets and hence the globalization of a financial crisis. cooperative ties in terms of the nuts and bolts seem to have been furthered during the current crisis. at present, the cooperative relationship between jurisdictions appears to be strengthening at various levels. one element of the cooperative relationship is to share each country ’ s experience and lessons. in closing, i sincerely hope that the 4th deposit insurance corporation of japan round table in tokyo would offer such a valuable opportunity to share each other ’ s recognition and exchange