The Japanese economy has already started a sound movement toward a positive restructuring by means of expanding domestic markets. Careful policy coordination is needed. If the United States fails to seriously address the issue of readjusting its twin deficits in order to put its economy on a healthy path, uneasiness may erode confidence in the dollar and also undermine the future role of the Tokyo financial markets, hindering their function as a stable supply base of funds. The U.S. financial market now depends on Japan for one-third of all long term funds flowing in from overseas. The future role of Tokyo depends on a healthy management of the U.S. economic policy.