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The Political Economy of Exchange-Rate Policy: U.S. and Japanese Intervention Policies, 1977–90

Published online by Cambridge University Press:  28 November 2008

Keisuke Iida
Keisuke Iida
Affiliation:
Politics, Princeton University
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Abstract

Since day-to-day implementation of exchange-rate policy has been neglected in the literature on international monetary relations, U.S. and Japanese intervention policies in the post-Bretton Woods period are analyzed. The determinants of Japanese intervention policy are clearly identified: international coordination and U.S. intervention increase the amount of Japanese intervention. A strong tendency to ‘lean against the wind’ and some indication of ‘beggar-thy-neighbour’ policy exist as well. On the other hand, U.S. intervention policy is more elusive. There is some evidence, however, that Japanese and German intervention as well as the Louvre Accord and Democratic administrations led to larger amounts of U.S. intervention. Some interpretations are offered as to why it is difficult to unravel U.S. policy.

Type
Articles
Information
Journal of Public Policy , Volume 13 , Issue 4 , October 1993 , pp. 327 - 349
Copyright
Copyright © Cambridge University Press 1993

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