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The Yen as an International Currency
Author(s) -
Breedon Francis,
Williams Geoffrey
Publication year - 1999
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.00209
Subject(s) - depreciation (economics) , economics , currency , us dollar , liberian dollar , volatility (finance) , currency crisis , exchange rate , monetary economics , international economics , financial economics , finance , market economy , capital formation , financial capital , human capital
Japanese policy‐makers have spent many years attempting to increase the role of the Yen as a regional and international currency. In this article Francis Breedon and Geoffrey Williams look at its role both before and after the Asian currency crisis. Pre‐crisis they find that the Yen was of less regional importance than economic theory would suggest, so that its rapid depreciation from 1995 to 1997 did not influence regional currencies as much as it perhaps should have. Since the Asian crisis they find that its regional role has increased markedly, largely at the expense of the Dollar. This suggests that Yen volatility, which remains considerable, is likely to have more impact on regional Dollar exchange rates and thus less impact on real activity than before.