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Foreign Exchange Market: Utilizing your results from the simulation of the Japanese Goods and Money Markets in response to the stated shock, indicate the anticipated

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Foreign Exchange Market: Utilizing your results from the simulation of the Japanese Goods and Money Markets in response to the stated shock, indicate the anticipated change in the US Dollar/ Japanese Yen (JPY) exchange rate, as a result of the Trade (Current Account) and Finance (Capital Account) effects from adjustment in the Japanese Goods and Money Markets, respectively: Foreign Exchange Market (Explain briefly) Current Account (Trade Imports, Exports) Capital Account (Finance Capital Flows) Net Balance (Overall Settlement Balance) Reuters BOJ - inflation will prompt rate hike By Leika Kihara TOKYO, April 22 (Reuters) - The Bank of Japan is expected to project inflation will stay around its 2% target for the next three years in new forecasts due on Friday, signaling its readiness to raise rates again this year from current near-zero levels. The BOJ will begin to cut its purchases of Japanese government bonds (JGBs), though the timing and extent of the reduction are yet to be determined. "Irrespective of what the data will say in the near future, we will like to find a way and timing to reduce the amount of JGB purchases," Bank of Japan Governor Kazuo Ueda said. The remarks reinforce market expectations that the BOJ will raise its short-term interest rate target from the current 0-0.1% range. In March, the BOJ ended eight years of negative interest rates and other remnants of its unorthodox policy, making a historic shift away from its focus on reviving growth and quashing deflation with decades of massive monetary stimulus

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