The trade representative, Robert Zoellick, has said he plans to reinvigorate discussions about deregulation, perhaps starting with the telecommunications market. But with deflation considered the immediate crisis facing Japan, few government officials are interested in actions that would further lower prices. Treasury Secretary Paul H. O'Neill has suggested opening discussions with Japan's business leaders, whom he came to know as the chief executive of Alcoa. But while those leaders may eventually be persuaded to help with long-term reforms, like deregulation of Japan's telecommunications markets, they have little power on issues of fiscal and monetary policy, the immediate problem. Others have suggested letting the yen fall, making Japanese goods far cheaper here.
Some Japanese officials seem to be edging toward that approach.
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