Despite the fall of the dollar against the euro in 2004, the Japanese government was willing to

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Despite the fall of the dollar against the euro in 2004, the Japanese government was willing to buy American dollars in order to keep the value of the yen from appreciating relative to the dollar. Suppose that instead of slow growth, the Japanese economy had experienced rising inflation over the past decade. Discuss how rising inflation might have changed the Japanese government’s willingness to help finance the current U.S. account deficit.
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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