During the 1990’s the Japanese yen proved astonishingly strong despite the persisting recession. This paper tracks the … origins of the high yen. It analyses the influence of interest rates, prices and foreign exchange policy on the yen …. Since prices have been exerting their influence on the Japanese currency in the long run, the high yen is explained with …

The paper analyses the causality between the Japanese-US relative export prices and the yen-dollar exchange rate. It … explains why the Japanese yen proved strong even during the economic slump of the 1990s. The paper suggests that the … appreciation of the Japanese yen forced the Japanese enterprises into price reductions and productivity increases, which put a …