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 …

The continuing strength of the dollar has fueled interest in the relationship between productivity and exchange rates …. An analysis of the link between the dollar's movements and productivity developments in the United States, Japan, and the … euro area suggests that productivity can account for much of the change in the external value of the dollar over the past …