A History of Yen Exchange Rates
JAPANESE FINANCIAL MARKET RESEARCH, William T. Ziemba, Warren Bailey, and yasushi Hamao, eds., Elsevier, 1991
22 Pages Posted: 8 Nov 2004
The history of Japanese exchange rates, though short by British or American standards, is exceedingly rich, both from the standpoint of variation in the data and in the institutions governing exchange rate arrangements and Japanese monetary conditions. This paper reviews that history and traces the evolution of yen-dollar and yen-sterling exchange rates to indexes of purchasing power parity, and it investigates the links among exchange-rate regimes, exchange rates themselves and other macroeconomic variables. Two conclusions emerge: (1) Purchasing power parity - at least in relative form - held remarkably well for the yen over the longer run. (2) The variability of real yen exchange rates under the current float does not, in fact, differ greatly from the often substantial and largely self-reversing movements observed historically.
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