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There's a tendency for the yen to strengthen because it's rated highly, but I don't think that accurately reflects Japan's economic performance.

In this context, the current recovery in the Japanese economy is taking place in tandem with the growing interdependence with the rest of the world, particularly with the other East Asian economies.

We must draw on the unique strengths of the Japanese economy, seek an open and cooperative approach with our international partners, and intelligently exploit the promise of new growth areas.

Government bonds have basically been sold in the domestic market, so there is some sense of stability, but the amount of public debt is really severe... Japan must manage its finances with a sense of urgency.

Japan's experience suggests the importance of assessing the sustainability of price stability over a fairly long period, which many central banks have emphasized in recent years.

Japan is already a leader in energy efficiency, and it has a wealth of innovative technologies. We must put this expertise to use creating a model for growth and sustainability that we can share with the world.

Japan rose from the ashes of World War II as a 'trading state,' the model for export-led growth. It is not clear that the old export model of growth will be sustainable in a more 'balanced' global economy that does not rely so heavily on the U.S. consumer.

When a population saves a lot, the funds are invested outside the country as well as inside. If the Japanese invest in the United States, it pushes their exchange rate down and makes their manufacturing more competitive.

So, Japan as a country has lost its vigor; it feels very much closed in for various reasons.

When I came to office, in terms of diplomacy and national security, as well as the economy, Japan was in a very severe situation.