Hayami justifies radical monetary easing in March

JAPAN - Bank of Japan Governor Masaru Hayami on Mar 30, 2001 raised the spectre of weak demand tipping the world's second-largest economy into a destructive deflationary spiral.

Hayami told a parliamentary committee that Japan's deepening economic plight and the prospect of massive restructuring of inefficient industries had warranted the radical monetary policy easing undertaken by the central bank earlier in Mar 2001.

"We cannot allow the possibility of demand weakening further," Hayami said,