Macroeconomics 13th Edition by William Baumol ,Alan Blinder

Exercise 6

In 2011 and 2012, market forces raised the international value of the Japanese yen. Why do you think the government of Japan was unhappy about this currency appreciation ( Hint: Japan was trying to recover from both a recession and a disastrous earthquake/tsunami at the time.) If they wanted to stop the yen's appreciation, what actions might the Bank of Japan (Japan's central bank) have taken Ask your instructor what the Bank of Japan subsequently did in 2013 and 2014.