Fujii, Geithner agree domestic-led growth good for Japan, world

PITTSBURGH, Pennsylvania, Sept. 24 Kyodo -
Japanese Finance Minister Hirohisa Fujii and U.S. Treasury Secretary Timothy
Geithner agreed in a meeting Thursday that domestic demand-led growth is good
for Japan and the world economy, and also discussed currency issues, Fujii
said.
''I told him that the new administration will make a shift to economic policies
centered on domestic demand,'' Fujii told reporters after the bilateral meeting
in Pittsburgh. ''Not only for Japan, that will also be a big plus for the world
economy.''
Fujii said Geithner showed ''great empathy'' for Japan's latest recovery plans,
which focus strongly on increasing disposable household income.
Fujii said Japan's direction is in line with U.S. economic policies.
During the meeting, which lasted about 30 minutes, Fujii said he and Geithner
also discussed currency issues.
Fujii said he told Geithner he is against seeing any currency devalued
''intentionally'' and received a positive response.
''There are some countries tending to adopt policies to lower their own
currencies'' but ''in principle'' Japan will not do so or intervene in the
currency market, he said.
Fujii said foreign exchange rates must be moved by the market.
Fujii also held bilateral talks with finance chiefs from Australia and South
Korea -- Wayne Swan and Yoon Jeung Hyun, respectively -- before the Group of 20
summit and agreed that they will deepen ties to achieve sustainable growth.
The G-20 consists of the Group of Seven major industrialized countries --
Britain, Canada, France, Germany, Italy, Japan and the United States -- and
emerging heavyweights such as Brazil, China, India and Russia, which together
represent about 80 percent of the world's economic output.
==Kyodo