In brief: understanding the rising Japanese trade surplus

The rise in the yen since 1990 pushed the nominal Japanese trade surplus upward while reducing the real trade surplus. If the yen stabilizes, then the nominal balance is poised to decline in response to the past yen appreciation. However, a further rise in the yen would likely force the nominal surp...

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Bibliographic Details
Published in:Federal Reserve Bank of New York Quarterly Review 1994-04, Vol.19 (1), p.34
Main Author: Klitgaard, Thomas
Format: Article
Language:English
Subjects:
American dollar
Analysis
Balance of trade
Currency
Economic impact
Exports
Foreign exchange
Foreign exchange markets
Foreign exchange rates
Increases
International trade
Prices
Prices and rates
Recessions
Trade surplus
Yen
Yen (Japan)
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Summary:The rise in the yen since 1990 pushed the nominal Japanese trade surplus upward while reducing the real trade surplus. If the yen stabilizes, then the nominal balance is poised to decline in response to the past yen appreciation. However, a further rise in the yen would likely force the nominal surplus even higher, delaying once again the downward adjustment in the merchandise trade surplus that eventually comes from a stronger yen.
ISSN:0147-6580