In the speech 'Japan's Deflation and Policy Response' Kazuo Ueda of the Bank of Japan said the deflation of general prices has not been the major problem in Japan. Instead, asset price deflation and its interaction with the financial system and the economy have been at the core of the problem. Given the nature of the problem, it would be nice if measures could be found that address financial sector problems as well as macroeconomic deflationary forces.

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