The role of the yen in the International financial system is reconsidered from a comparative (historical) approach …. Compared with the D-Mark in the postwar years, the limited use of the yen results not so much from regulations on capital … arrangement. Seen from the foreign economic relations, it is not possible for Japan to own a key-currency independent from the U …

This paper employs the GMM estimator to empirically investigate the effects of Japanese international reserves on Yen … internationalization from 1976 through 2009 by specifying the regression benchmark based on the long-run determinants of Yen … internationalization with economic power, Yen appreciation, financial market development, inflation and currency inertia. We find that the …