East Asia is characterized by intricate production and distribution networks that allow fragmented production blocks to be allocated across countries based on comparative advantage. These networks have produced enormous efficiency gains. Exchange rate volatility, by increasing uncertainty, may...

Trade imbalances between Japan and the U.S. could cause the yen to appreciate against the dollar. Evidence presented here indicates that this could increase the U.S. trade deficit with Japan. An appreciation of the yen against the dollar would also cause the yen to appreciate against the RMB and...

The Japanese yen in 2012 remained 25% above its value in 2007. Exports, industrial production, and stock prices crashed after 2007 and had yet to regain their pre-crash values five years later. This paper investigates the contribution of the yen appreciation to this economic disaster. Evidence...

Many argue that the renminbi needs to appreciate to rebalance China's trade. However, empirical evidence on the effects of an RMB appreciation on China's exports has been mixed for the largest category of exports, processed exports. Since much of the value-added of these goods comes from parts...