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

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Tema [17]

4 years ago

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

n the

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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.