In the late 1980s, the Bank of Japan bought billions of dollars in the foreign exchange market to prop up the dollar's value against the yen. What were the likely consequences of this foreign exchange market intervention for the Japanese economy?© BrainMass Inc. brainmass.com June 3, 2020, 9:21 pm ad1c9bdddf
Without domestic sterilization, the increased purchase of dollars for yen led to a jump in the Japanese money supply. Initially, this increased ...
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