TRING, England (Reuters) - Group of Seven ministers raised no problems with Japan’s efforts to beat deflation with loose monetary and fiscal policies, Japanese Finance Minister Taro Aso said on Friday.
“We explained at the G7 that Japan took bold monetary and fiscal action to end prolonged deflation, with the government and the Bank of Japan working closely together,” Aso told reporters after hours of talks with fellow Group of Seven finance ministers and central bankers.
“The G7 didn’t have a particular problem ... I think Japan’s stance is gaining broader understanding,” he said.
One consequence of a massive stimulus plan by the Bank of Japan has been to weaken the yen dramatically, sparking talk of a currency war. The yen hit a four-year low against the dollar on Friday.
Reporting by Leika Kihara