Japan warns on deflation at G7 meeting in Paris

With Japan continuing to suffer the effects of deflation, finance minister Shiokawa has warned that increased threats of war may make the prospect of deflation more serious for the world.

Source: Reuters

Japanese Finance Minister Masajuro Shiokawa said on Friday that the Group of Seven leading economies must cooperate if a possible war with Iraq worsens deflationary pressures around the world.

"If the so-called geopolitical risks materialize, a major concern is that deflation around the world be