Question
Examine an episode of large-scale intervention by the Bank of Japan (BoJ) in the yen-dollar foreign exchange market. Plot between January 2009 and January 2013
Examine an episode of large-scale intervention by the Bank of Japan (BoJ) in the yen-dollar foreign exchange market. Plot between January 2009 and January 2013 a measure of BoJ intervention (FRED code: JPINTDUSDJPY). Do positive values of intervention indicator reflect purchases or sales of yen by the BoJ? What was the BoJ's policy objective? To investigate whether the intervention was effective, add the U.S. dollar-Japanese yen exchange rate (FRED code: EXJPUS) to the chart, but scaled on the right axis. (LO5)
Hints: Enter "JPINTDUSDJPY" into the FRED search box. Select the "Edit Graph" button and, to add a second line, enter "EXJPUS." When the full name appears, click it and then "Add data series." Select the "Format" tab and for the second line, at "Y-Axis position" select "right." Finally, use the boxes for the observation dates to set the plot for the January 1 2009 to January 31 2013
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