Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/47592
Authors: 
Schnabl, Gunther
Year of Publication: 
2001
Series/Report no.: 
Tübinger Diskussionsbeiträge 218
Abstract: 
During the 1990's the Japanese yen proved astonishingly strong despite the persisting recession. This paper tracks the origins of the high yen. It analyses the influence of interest rates, prices and foreign exchange policy on the yen-dollar exchange rate. It comes to the conclusion that real interest differentials can only explain shortterm exchange rate changes. Since prices have been exe rting their influence on the Japanese currency in the long run, the high yen is explained with deflation. The massive foreign exchange interventions of the 1990's were only able to stop the appreciation temporarily, if they were unsterilized, but they had no lasting effects.
Subjects: 
Yen
Yen/Dollar Exchange Rate
Foreign Exchange Intervention
Japan
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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