The paper analyzes the joint determination of the exchange rate and the interest rate in terms of the stochastic structure of underlying real and monetary factors. It argues that the information contained in the covariation of the exchange rate and the interest rate, as two variables that...

The paper presents an empirical analysis of official foreign exchange market intervention and domestic monetary control in Japan during 1973-89. It shows that: (1) the authorities, a net purchaser of foreign exchange over this period, began to intervene more decisively in 1978; and (2) they began to...

The paper explores the relationship between trade policy and current accounts. The effect on the current account of a change in protection at home and then abroad is analyzed, assuming that the exchange rate floats. The quot;savings-and-investment approachquot; is used. It shows that there is no...

This paper presents a brief survey of the empirical literature on survey-based exchange rate expectations. The literature in general supports the presence of a non-zero risk premium and rejects the hypothesis of rational expectations. The crucial result is that, while short-run expectations tend...

The paper reviews the statistical behavior of major currency exchange rates during 1975-86. A close inspection indicates small deviations of recent exchange rate behavior from random walks and some systematic movements in monthly data, possibly corresponding to the relatively infrequent arrivals...

The paper summarizes how Japan`s foreign exchange and trade control system operated in the early 1950s, how and how effectively it was used as a tool of external adjustment, and how it was liberalized from the late 1950s into the early 1960s. Although the Japanese government was extensively...