Although economic issues appear to have recently taken a back seat in Japan-U.S. relations -- particularly since the Sept. 11 terrorist attacks -- the failure of Japan's economic reform initiatives could lead to another financial crisis that would also have a serious impact on the U.S., warned a U.S. expert.
Edward J. Lincoln, a senior fellow at The Brookings Institution, said U.S. President George W. Bush should not hesitate to step up "gaiatsu" pressure on Japan over economic issues, when necessary, despite his current priority of securing Tokyo's cooperation in the war against terrorism.
He was among the panelists at the Brookings Institution-Keizai Koho Center symposium who took up economic regulations and restructuring.