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 …

widely argued that flexible exchange rate regimes encourage banks to match dollar-denominated liabilities with a … corresponding amount of dollar-denominated assets, ameliorating currency mismatches. Does the behavior of dollar deposits and credit …

countries, the role of the dollar in ERM exchange rate crises, and ERM members' credibility as measured by the realignment … interest rates and weakness of the U.S. dollar. …

-weighted dollar and real bilateral rates against the dollar. However, taking these additional factors into account reduces the … estimated effects of interest rates on the dollar. An error-correction model that includes these factors explains about half of … the in-sample variation of changes in the real trade-weighted dollar and has out-of-sample prediction errors that are 60 …

Dallas index, which uses a Paasche index. The choice of base year alters the behavior ofthe dollar in these two indexes. We … contrast this result with the behavior of the dollar in comparable chain TWEXs, where the base year sensitivity is absent. Our …

dollars. Expectations of yen appreciation against the dollar have been (1) consistently large, (2) variable, and (3) greater … than the forward premium, implying that investors were willing to accept a lower expected return on dollar assets. At short …