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The Real Yen Exchange Rate and Japanese Productivity Growth
Author(s) -
Ceglowski Janet
Publication year - 1996
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.1996.tb00083.x
Subject(s) - economics , productivity , exchange rate , context (archaeology) , sample (material) , econometrics , structural break , series (stratigraphy) , monetary economics , macroeconomics , thermodynamics , paleontology , biology , physics
This study investigates the time‐series properties of five real yen exchange rates by testing for stationarity in the context of a single structural shift. It finds that all but one of the series are stationary in conjunction with a trend‐ or mean‐break in the late 1950s or early 1970s. By comparison, most real rates for five other industrialized countries are stationary around a constant mean. These findings suggest that the behavior of the real yen exchange rate is unique among the six currencies in the sample, a difference that may originate in the exceptional productivity performance of the Japanese traded‐goods sector.