Monetary condition of japan 2012 . .

For more than a decade the Japanese economy has been underperforming, the average growth for the past 12 years has been just above 1% and nominal GDP due to deflation in 1997 has been shrinking.  The economy with no doubt is in deflation. For the last several years the bank of japan has conducted a monetary policy in the deflationary environment, which has been a source of controversy. The government and the bank of japan share the recognition that the critical challenge for Japan’s economy is to overcome deflation as early as possible, the bank and government will work together to address this challenge. Structure predisposed to deflation is vital in addition to suitable macroeconomic strategy management. Therefore, Government will promptly formulate economic policy measures to counter risks of a downturn that Japan's economy faces at this juncture and to accelerate measures for realizing economic revitalization. The Government, concentrating on through fiscal 2013, will organize best policy actions including regulatory and institutional changes, budget, loan program and fiscal investment, and tax in order to vigorously assemble people, money and goods. The Government will evaluate the economic growths including the state of deflation and the macroeconomic supervision repeatedly at the Ministerial Council on Exiting Deflation.