1.9 With the strengthening of the yen against the US dollar in 2010, Japan’s central bank did not take any action.

A leading Japanese politician has called on the central bank to take actions to weaken the yen, saying it will help exporters in the short run and have no long-run effects.

a What is Japan’s current exchange rate policy?

b What does the politician want the exchange rate policy to be in the short run? Why would such a policy have no effect on the exchange rate in the long run?