27) if u.s. interest rates fall relative to japanese interest rates and japanese inflation falls relative to u.s. inflation, the

Question

Tema [17]

3 years ago

10

27) if u.s. interest rates fall relative to japanese interest rates and japanese inflation falls relative to u.s. inflation, the

n the

Business

1 answer:

Oduvanchick [21] · Answer 1 · 2021-11-28T21:38:41+03:00

The US dollar savings will flow into Japan and put appreciation pressure on the Japanese Yen, resulting in a number of policy choices for Japan: 1, the Japanese central bank will interface the exchange rate between US dollar and Japanese Yen by buying and hoarding US dollars ; 2, the Japanese interest rate will also fall to counter the pressure of currency appreciation; 3, the Japanese central bank could increase monetary supply to deliberately increase inflation pressure.