POLI 243 Lecture Notes - U.S. Bancorp, United States Dollar, Economic Sanctions
23 Apr 2013
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Document Summary
U. s. encouraged japan to have a lowered exchange rate. During the bretton wood years, 1960s, beginning of the 1970"s helped japan. Strong trade tie between japan and u. s. Trade surplus with the u. s. was large. U. s. in the early 1980"s struggling through the recession because of the exchange rate that was boosted up. Trade imbalance- losing job in the u. s because of slow interests. Buying all the goods from japan, japan not buying from them. On the japanese side, they like having a lowered exchange rate, but they don"t want the yen to be used internationally or a medium of exchange. Weren"t trying to be international financial center. In germany, if the yen was used internationally, many would hold it outside the country, it would be harder for the central bank to manage the currency. Therefore they don"t want the yen to rise in value because of trade purposes and in the financial systems.
