Japan, US agree on joint effort, discuss global economy

Other News Materials 9 February 2008 08:40 (UTC +04:00)

( dpa ) - Japanese Finance Minister Fukushiro Nukaga and US Treasury Secretary Henry Paulson Saturday in Tokyo agreed to continue close cooperation and exchanged views on the economy.

The two financial leaders of the world's most powerful economies held talks ahead of the Group of Seven (G7) meeting.

Nukaga, who co-chairs the G7 meeting, had hoped to discuss the US view of how emergency measures would affect the global economy.

Before the meeting with Paulson, the Japanese minister had said the subprime mortgage woe "originates from the United States, so we want the country to properly deal with it and talk about the future outlook."

Since year's begin, the US Federal Reserve reduced its key lending rate from 4.75 per cent to 3 per cent to calm the subprime crisis. The US Congress on Thursday passed an emergency economic stimulus package to keep the US from entering a recession, following the urging of US President George W Bush.

Nukaga intended to share Japan's experience of recovering from the financial crisis after the economic bubble burst of the early 1990s to give, Kyodo News Agency said.

At the Tokyo gathering, the finance ministers and central bank governors from Britain, Canada, France, Germany, Italy, Japan and the United States were also expected to discuss growth of emerging economies, especially China and India.