 Yen Opportunity Gained and Lost (1993–2000)Brendan Brown Chapter 5 in The Yo-Yo Yen, 2002, pp 163-214 from Palgrave Macmillan Abstract: Abstract By summer 1993, the Japanese economy had proceeded far down the wrong road since its asset market bubbles had burst. Overly tight monetary policies, wrong currency signals from the policy control tower (especially the Bank of Japan Governor) and a new profligacy in public expenditure had all played a role in the misdirection of the economy. True, the Bank of Japan had at last brought interest rates down to a historic lowpoint (official discount rate (ODR) at 2.5 per cent) in early 1993, and in the autumn (1993) was to reduce rates further (ODR down to 1.75 per cent), but that was far short of the aggressive ease required (ODR at 0.25 per cent coupled with massive open market operations designed to step up the pace of monetary expansion) to reverse the errors of the previous two years. And the yen was at a stiflingly high level (except as perceived by those policymakers in Tokyo or Washington who assessed equilibrium exchange rates in terms of their consistency with the single aim of extinguishing the Japanese trade surplus). Keywords: Interest Rate; Monetary Policy; Central Bank; Hedge Fund; Foreign Asset (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-0710-3_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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