Publication

Japan’s intervention to slow the upward revaluation of the yen has raised concerns in the United States and brought charges that Tokyo is manipulating its exchange rate in order to gain unfair advantage in world trade. This coincides with similar charges being made with respect to the currency of China. This report provides an overview and analysis of Japan’s official intervention into currency markets, reviews various studies on the probable effect of that intervention, examines the charge that Japan has manipulated its exchange rate as defined by the International Monetary Fund (IMF), and reviews legislation and policy options.