TY - BOOK ID - 65580129 TI - Anatomy of Sudden Yen Appreciations AU - Han, Fei. AU - Westelius, Niklas. PY - 2019 SN - 1498325416 1498317340 1498325394 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Yen, Japanese. KW - Japan--Economic conditions. KW - Economic history. KW - Japanese yen KW - Money KW - Economic conditions KW - History, Economic KW - Economics KW - Banks and Banking KW - Econometrics KW - Foreign Exchange KW - Investments: Futures KW - Money and Monetary Policy KW - Bayesian Analysis: General KW - Time-Series Models KW - Dynamic Quantile Regressions KW - Dynamic Treatment Effect Models KW - Diffusion Processes KW - State Space Models KW - Interest Rates: Determination, Term Structure, and Effects KW - Monetary Policy KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Currency KW - Foreign exchange KW - Finance KW - Monetary economics KW - Econometrics & economic statistics KW - Exchange rates KW - Currencies KW - Vector autoregression KW - Futures KW - Zero lower bound KW - Econometric analysis KW - Financial institutions KW - Financial services KW - Derivative securities KW - Interest rates KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:65580129 AB - The yen is an important barometer for the Japanese economy. Depreciations are typically associated with favorable economic developments such as increased corporate profits, rising equity prices, and upward pressure on domestic consumer prices. On the other hand, large and sharp appreciations run the risk of lowering actual and expected inflation, squeezing corporate profits, generating a negative wealth effect through depressed equity prices, and reducing confidence in the Bank of Japan’s efforts to reflate the domestic economy and achieve the inflation target. This paper takes a closer look at underlying drivers of rapid yen appreciations, highlighting the key role of carry-trade and the zero lower bound as important amplifiers. ER -