Many past studies of relative financing costs in the United States and Japan have relied on interest rates from the … capital controls from financial markets abroad. Interest rates on bank loans, the most important source of financing in Japan …

extensive in Japan. In response to a appreciation of the yen, Japanese firms reduce their export prices in yen sharply so as to …

United States relative to Japan. High productivity growth in the traded sector of the Japanese economy results in a … continuous fall in the prices of traded goods relative to nontraded goods in Japan. In order to keep U.S. traded goods …