The recent volatility of your Japanese exchange rate is certainly an example of how volatility in the currency provides impacted the Japanese overall economy. There are two large car manufacturers in Japan that sell vehicles in the United States: Business A and Company N. In the past, these businesses primarily developed yen movement com cars in Asia but are at this time building factories in the United States. The effect of a a hundred and twenty yen/dollar exchange rate can be dramatic. What goes on?

The yen-dollar exchange fee is one of the most essential variables in Japan’s fiscal policy. This kind of exchange price is troubled by the Bank of Japan’s fiscal policy reaction function. We estimate going coefficients for this variable from 1974 to 1999. We find that the yen/dollar exchange costs have a temporary impact on fiscal policy about 1978/79, and next the effect turns into essential starting about 1986. After 1989, the Japanese authorities’ efforts to support the yen/dollar relationship tended to increase.

The yen-dollar exchange rate differs daily, which affects both firms equally. Prior to the war, the yen bought and sold at 3 or more. 6 yen to the money. The yen-dollar exchange level sank to six-hundred yen to the USD. In 1945, US forces decreed the conversion rate of 15 yen to the USD. The yen tanked, attaining 50 yen to the dollars by 1946. The yen eventually fell to seven hundred yen to the dollar by 1947.