Thursday, February 28, 2013

Yen Depreciation and the Scope for Expenditure Switching by Menzie Chinn
With Haruhiko Kuroda ascending to head the Bank of Japan [1], it is likely that monetary policy will remain fairly expansionary. Even without direct intervention in foreign exchange markets, the yen will likely continue to weaken as expectations of inflation rise. What is the likely impact of trade flows?

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