Further reforms mean tough political moves. But with a mandate like this, Koizumi has no excuse not to carry through.

Despite ballooning JGB issuance, Japanese financial institutions have ample appetite for JGB investment.

Projections for the next two months are good, and if things go as forecast, we'll be able to confirm that the economy is recovering from a temporary slump.

The main goals in the conduct of monetary policy after quantitative easing will be to ensure that the ensuing adjustment in the bond market remains orderly.

If expectations for prolonged zero rates grow excessively, that may stimulate demand too much, cause a swing in economic activity and force the central bank to make drastic policy changes.

The central bank should steer its monetary policy so that expectations are not fueled too much that the low interest-rate policy will be prolonged.