Jump to ContentJump to Main Navigation
Japan's Bubble, Deflation, and Long-term Stagnation$
Users without a subscription are not able to see the full content.

Koichi Hamada, Anil K Kashyap, and David E. Weinstein

Print publication date: 2010

Print ISBN-13: 9780262014892

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262014892.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use (for details see http://www.mitpress.universitypressscholarship.com/page/privacy-policy).date: 12 December 2017

Time of Troubles: The Yen and Japan’s Economy, 1985–2008

Time of Troubles: The Yen and Japan’s Economy, 1985–2008

Chapter:
(p.50) (p.51) 3 Time of Troubles: The Yen and Japan’s Economy, 1985–2008
Source:
Japan's Bubble, Deflation, and Long-term Stagnation
Author(s):

Maurice Obstfeld

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262014892.003.0003

Japan’s real economic growth rate generally shows a strong negative correlation with the level of the yen’s real effective exchange rate. In light of the development of Japan’s macroeconomy, however, the determinants of the yen’s short- and even longer-term movements remain poorly misunderstood. This chapter examines the interplay between monetary policy and the exchange rate during the period of Japan’s bubble economy and subsequent economic stagnation, and explains how monetary movements affect both the real exchange rate and the nominal exchange rate. It first analyzes Japan’s policy interest rates and then looks at the evolution of the yen’s real exchange rate with reference to international trade and inter-sectoral productivity growth gaps, as predicted by the Harrod–Balassa–Samuelson model, as well as fluctuations in relative international prices for traded goods, including energy.

Keywords:   yen, exchange rate, macroeconomy, monetary policy, Japan, economic stagnation, interest rates, international trade, productivity growth, Harrod–Balassa–Samuelson

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.