The Political Economy of Exchange Rates: The Case of the Japanese Yen
Asian Pacific Journal of Accounting & Economics, Forthcoming
BBVA Working Paper No. 0917
April 2012Japan and the World Economy 24(3):193-196
17 Pages Posted: 26 Aug 2009 Last revised: 3 Aug 2021
Date Written: July 13, 2007
Abstract
This paper sets out a political economy model of strategic exchange rates, focusing in the importance of external lobbying. Applying it for the recent history of the Japanese yen, we show that pressure from the U.S. trade negotiators contributed to an appreciation of the Japanese yen, as well as to a reduction in import prices and profits of Japanese commercial banks.
Keywords: Japan, yen, political economy model, lobbying
JEL Classification: F31, F59
Suggested Citation: Suggested Citation