The Political Economy of Japanese Monetary and Exchange Rate Policy

Economic Review, Vol. 1, No. 1, pp. 3-46, 2011

Posted: 14 Nov 2011

See all articles by Ulrich Volz

Ulrich Volz

University of London - School of Oriental and African Studies (SOAS) - Economics; Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Manabu Fujimura

affiliation not provided to SSRN

Date Written: November 14, 2011

Abstract

This study analyzes the political economy of Japanese monetary and exchange rate policy, with particular emphasis on the Japanese position regarding East Asian monetary cooperation and integration. We try to disentangle the factors and interest structures behind the polices taken in order to infer how the Japanese position regarding regional monetary cooperation might evolve over time. The analysis shows that while the current incentive structure within the Japanese economic and political system gives little room for a far reaching commitment of the Japanese government to engage in regional monetary cooperation, a further integration of the Japanese economy into the regional economy and a growing dependency on the East Asian market are likely to shift the equilibrium in favor of regional cooperation.

Keywords: Japanese monetary and exchange rate policy, political economy, East Asian integration

JEL Classification: E42, E58, F33, F5

Suggested Citation

Volz, Ulrich and Fujimura, Manabu, The Political Economy of Japanese Monetary and Exchange Rate Policy (November 14, 2011). Economic Review, Vol. 1, No. 1, pp. 3-46, 2011. Available at SSRN: https://ssrn.com/abstract=1959326

Ulrich Volz (Contact Author)

University of London - School of Oriental and African Studies (SOAS) - Economics

London, WC1E 7HU
United Kingdom

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 4
Bonn, 53113
Germany

Manabu Fujimura

affiliation not provided to SSRN ( email )

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