Japan's aggressive monetary easing policy may spark debate at a two-day meeting of the Group of Seven financial chiefs from Friday as the dollar surged to ¥101 in Tokyo for the first time in more than four years.
During the gathering in Aylesbury in the suburbs of London, the G-7 finance ministers and central bank governors are expected to reaffirm their February commitment that fiscal and monetary policies should be aimed at supporting domestic demand, not targeting exchange rates, a conference source said.
Some emerging economies are critical of the accommodative monetary policies by major advanced economies, particularly Japan and the United States, due to concerns of possible negative spillover effects, including massive fund inflows and the formation of asset bubbles.