present paper employs the Johansen [S. Johansen, Statistical analysis of cointegration vectors, Journal of Economic Dynamics … and Control 12 (1988) 231–254] cointegration approach to check the long-run co-movements of real outputs among the East … Asian countries, Japan and the United States to draw some implications about forming a monetary union in the region. The …

The paper first surveys recent estimates of the appropriate yen dollar exchange rate that have been proposed in the … literature. Most of the more careful estimates suggest that the yen was substantially undervalued against the dollar in early … is warranted. ; We then turn to the adjustment process. First, we present evidence that a narrowing of Japan's record …