Prime Minister Yukio Hatoyama and Bank of Japan Gov. Masaaki Shirakawa will meet early this week to discuss the economy, which is mired in deflation, and the soaring yen, Senior Vice Financial Services Minister Kohei Otsuka said on a TV show Saturday.
The meeting appears designed to coordinate fiscal policy with monetary policy as Japan struggles to help the economy recover.
The government said last week that the economy had entered deflation. It now plans to compile a second supplementary budget for fiscal 2009 to stimulate the economy even more.
Fiscal and monetary authorities are concerned the yen's rise against the falling dollar and other major currencies will hurt exporters, who are the main drivers of the economy.
In Tokyo trading on Friday, the dollar tumbled into the ¥84 zone for the first time in 14 years and four months.
Hatoyama and Shirakawa last met Oct. 15.