of ways in which the market may be improved. moreover, as the issuance of securitized products has stagnated since its peak in fiscal year 2006, we need to revitalize the securitization market as well. bis central bankers ’ speeches bank borrowings. abl may thus lead to the enhancement of the surveillance capacities of financial institutions through the necessity of continuous monitoring of such firms. the promotion of this kind of abl could contribute to the enhancement of economic growth potential, and i believe it is a useful scheme also for asia in the future. in this regard, the bank of japan established the “ special rules for equity investments and asset - based lending to enhance the fund - provisioning measure ”, which has been in effect since summer 2010. the special rules were established with the aim of further enhancing financial institutions ’ efforts to strengthen the foundations for economic growth through the use of a wider range of financial techniques. ( 5 ) to enhance financial inclusion the fifth challenge is financial inclusion. from the perspective of developing deep financial markets, it is also important to improve infrastructures so that more of the world ’ s population has access to financial services. there are reportedly more than 2. 5 billion adults who are excluded from accessing financial services, and also tens of millions of small enterprises that are facing serious financing problems. financial inclusion is a project with the aim of resolving the problem of inaccessibility to fundamental financial services. the project is expected to improve the lives of underprivileged people, and provide fundamental financial support to small enterprises, leading to the realization of sustainable economic growth through the increase in personal consumption and the creation of job opportunities. as the european debt problem gets worse and uncertainties grow in the global economy, financial inclusion has an important role to play in improving the welfare of emerging markets and developing economies with high growth potentials, and thus in ensuring global economic stability ( chart 7 ). financial inclusion has been discussed in the framework of international forums such as the g - 20 and apec. meanwhile, in the area of financial education, closely related to financial inclusion, the oecd has introduced valuable initiatives to enhance global cooperation by, for example, publishing the report, “ recommendation on principles and good practices for financial education and awareness ” in 2005, and also by establishing the international network on financial education. i support wholeheartedly further development of these initiatives, as financial education, like financial inclusion, is essential for the stability of the global financial

hence offset an increase in demand stemming from additional fiscal measures. under such circumstances, the output gap will not improve and prices will not rise. that said, whether or not a central bank can control bond prices depends not on its intention but on market judgment. it is for that reason too that i emphasize the importance of fiscal consolidation. see sims ( 1999 ), christiano and fitzgerald ( 2000a, b ), leeper ( 1991 ), cochrane ( 2000 ), and woodford ( 1996, 2001 ) for details regarding the fiscal theory of price level. bis central bankers ’ speeches concluding remarks a. government ’ s commitment for fiscal consolidation now, let me sum up. in my speech today, i have repeatedly emphasized the importance of fiscal consolidation. indeed, the japanese government has already said that it will halve the deficit in the primary balance relative to gdp by fiscal 2015 from the level registered in fiscal 2010. furthermore, it is committed to turning the primary balance from a deficit to a surplus by fiscal 2020. those moves constitute an important part of the government ’ s commitment to fiscal consolidation and are now widely accepted by the international community. accordingly, the government decided to raise the consumption tax from 5 to 8 percent in april ; moreover, the tax rate is scheduled to be raised to 10 percent in october 2015. down the road, we may hear more discussion concerning whether the consumption tax of 10 percent is enough to make the fiscal structure sustainable. whatever the discussion might be, it is important to acknowledge that the government will take a crucial first step toward fiscal consolidation, given mounting social security spending. there is no question about that, and financial markets understand the government ’ s intention on that. b. qqe based on fiscal consolidation recent long - term rates have been stable in light of signs of overcoming deflation. that is not just due to the effects of the bank ’ s jgb purchases. it also hinges on the fact that market participants and businesspeople have full confidence in the government ’ s strong commitment to fiscal consolidation. that enables the bank to conduct massive jgb purchases without being trapped in fiscal dominance. the bank offers full support to the government ’ s commitment. the commitment for fiscal consolidation by the government is imperative so that the qqe – which is designed to overcome deflation – should not be perceived as the means for “ financial repression ”. at the same time, a problem will arise if the government creates a fiscal cliff, as epitomized by the enforcement